DJIA is a stock market index that is used to represent and measure the overall performance of the United States's economy.

DJIA was created to track the movement of industrial businesses in the US. Thus, stocks with higher share prices have a greater weight in the index than those with lower share prices. Such an index is called a price-weighted index. The stock values of 12 firms were added together and divided by 12 to arrive at an average. As time progressed, the index's computation was tweaked to account for the percent contribution of each component to the index's overall value.

The Dow Jones Industrial Average (DJIA) is one of the oldest and most recognized stock market indices in the world. Created in 1896 by Charles Dow and Edward Jones, it tracks the performance of 30 prominent publicly traded companies in the United States across various industries, excluding utilities and transportation.

The DJIA is a price-weighted index, meaning companies with higher stock prices have a greater influence on its movements. It serves as a barometer for the overall health of the U.S. stock market and economy.

Despite representing only 30 companies, the DJIA provides valuable insight into market trends due to its inclusion of well-established, blue-chip companies. It is widely followed by investors and analysts as an economic indicator.