Do you like money? I am sure you said yes. So, to make sure you have a better understanding of your money, you should know how our financial system works. To begin, you should know what the Dow Jones is, so let's get started.
The Dow Jones Average:
The Dow Jones Average (DJIA - also known as the Dow) is an average of 30 "Blue Chip" stocks, invented by Charles Dow in 1896. Over time, the companies in the average have changed. Currently (2010), some of the companies in the Dow are ones you know like: American Express, AT&T, GE, HP, McDonalds, Microsoft, Home Depot, Wal-Mart, and Disney. This is the oldest, single most watched stock average in the world. When the Dow moves, it has an influence on all of the other markets in the world. When it goes up, it gives people confidence and when it falls, it sometimes causes people to panic.
The Dow is traded in New York City on Wall Street. Currently, the average is at 10,437.