A very safe stock investment that generally attracts conservative investors is called a blue chip stock. the dow 30 is made up of such stocks.
The Dow Jones Industrial Average measures the average cost of 30 selected industrial stocks. This is important because the financial industry uses it to show the direction of the stock market over time.
The Dow Jones Industrial Average includes prices for only 30 companies and is a simple average. - The S&P 500 Stock Index is broader (500 shares) and represents a value-weighted average that gives more weight to the stocks with the largest market capitalization.
The Dow Jones Industrial Average is an index of 30 "blue chip" US industrial companies. The index includes a wide range of companies, from financial services companies to computer companies to retailers, but excludes transportation and utility companies included in another index.
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