To help you grasp the stock market's ups and downs, it might be helpful to understand the Dow Jones Industrial Average (often referred to as "the Dow").

The Dow is the oldest and most widely quoted stock market gauge. Experts believe it represents the overall market at any moment in time. The Dow is made up of a selected group of 30 stocks. These stocks are chosen by the The Wall Street Journal.

Look at the following graph. It shows the history of the Dow (accurate data is available for as far back as 1897).

Here are some things to consider as you review this graph:

­Fluctuations ­ The value of the Dow goes up and down like a roller coaster. Most of the changes are minimal, but occasionally (like in the 1980s) they are dramatic. 
Long-Term Upward Trend ­ The long-term trend of the Dow has been up since 1897. 
Spurts (Uneven Trends) ­ The upward trends are uneven. Many of the major moves are in spurts, few of which were predicted. 
Always Rising to New Highs ­ Since 1897, the Dow has always risen to new highs over time.

Information about the Dow can be found in the business sections of most major newspapers and on the Internet (look at americancentury.com).

If you haven't invested in stocks before, then tracking the Dow can help give you confidence in the potential of the stock market, as well as bringing a continued understanding of how it operates.