The average usually mean the sum of a group of major securities within a market divided the number of securities used in the equation. Basically, in the financial industry, it’s the average of the biggest, and key securities. For instance, the Dow Jones Industrial Average at the time of this writing was 11575.81. This was written September 25, 2006. (just in case you want to check) Entire stock exchanges can and will have averages as well. These averages are used as key tools in the financing industry. Analysts use these averages to measure price and value trend graphs for different securities or groups of securities within in a common industry.
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