The Dow Jones Industrial Average (DJIA) is a stock index composed of the 30 largest blue chip companies that trade on the NYSE and NASDAQ exchanges. The DOW, as it is sometimes referred to, is the second oldest stock index, behind the Dow Jones Transportation Average. It was created in 1896 by Charles Dow and his partner Charles Schwab. It is meant to represent the broader stock market. When market commentators say the market is up, they are generally referring to the DOW.
If an investor wants to invest in the DOW, he can buy shares of ETFs or mutual funds that track the index. Investors can also buy individual stocks within the DOW, such as Walt Disney Company, Exxon Mobil Corporation, and Microsoft Corporation.