How Can I Buy a Stock in the Dow Jones Industrial?
Original post by David Sarokin of Demand Media
The Dow Jones Industrial Average (DJIA) is a marketbasket of 30 of the largest companies on the New York Stock Exchange (NYSE). The Dow, as it is commonly known, is one of the most widely-cited stock market indexes. News reports that refer to the stock market rising or falling by a certain number of points are often referring to the change in the value of the Dow for that day. You can buy stocks in any of the "blue chip" component companies that make up the Dow Jones Industrial Average.
Obtain a current list of the 30 companies that comprise the Dow. The list changes as the fortunes of individual companies rise and fall. You can obtain a current list from your broker or find listings online at financial sites like Yahoo! Finance or CNNMoney.
Select the company in which you want to invest. DJIA companies were at one time all from heavy industry, but the 30 component companies in the modern Dow reflect many industrial areas, including technology, media and retail sales.
Research the company you are interested in purchasing to understand its business areas, financial position, future prospects and investment features such as dividends. Your broker can provide financial materials and stock analyst reports.
Contact your broker to purchase shares in the DJIA company you selected. You can also buy shares through an online broker such as TD Ameritrade or Charles Schwab.
Tips & Warnings
- You can invest in the entire Dow Jones Industrial Average Index through a fund such as the DIA exchange-traded fund.
About the Author
David Sarokin is a well-known specialist on Internet research. A former researcher with Google Answers, he has been profiled in the "New York Times," the "Washington Post" and in numerous online publications. Based in Washington D.C., he splits his time between several research services, writing content and his work as an environmental specialist with the federal government.