This average includes a price-weighted list of 30 blue chip stocks. While there are only 30 companies included on the list, many people think of the Dow when they here that “the stock market” gained or lost. The Dow is often used as a gauge of the health of the stock market as a whole, even though it is only a very small portion.

Source: https://investorjunkie.com/37463/common-investing-terms-definitions/

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