Which one of the following is a true statement regarding the Dow Jones Industrial Average?

A) It is a value-weighted average of 30 large industrial stocks.
B) It is a price-weighted average of 30 large industrial stocks.
C) It is a price-weighted average of 100 large stocks traded on the New York Stock Exchange.
D) It is a value-weighted average of all stocks traded on the New York Stock Exchange.

Dow Jones

A reference to either the Dow Jones Industrial Average (DJIA), a stock market index of 30 prominent companies in the U.S., or the company Dow Jones & Company, known for its financial market indices and news.

Industrial Average

A stock market index that measures the performance of a sector of the economy, typically composed of leading companies in that sector.

Price-Weighted

Refers to a stock market index in which each company's stock influences the index in proportion to its price per share.