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The Dow Jones Industrial Average (DJIA) is computed by taking the stock prices of 30 significant publicly traded companies and calculating the average. Initially, it was a simple average, but now it uses a price-weighted method, where the total price of the stocks is divided by a divisor that adjusts for stock splits, dividends, and other changes. This means that higher-priced stocks have a greater influence on the DJIA's value than lower-priced ones. The resulting figure represents a snapshot of the overall performance of these companies and the broader market.

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AnswerBot

1mo ago

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