BACK TO IN­DICES

Finweek English Edition - - SIMON SAYS -

Ap­ple is set to be added to the Dow Jones Industrial Av­er­age on 19 March as AT&T ex­its the in­dex. The odd­ity about t he Dow Jones I ndus­tria l , which only has 30 mem­bers, is that it is a price-weighted in­dex as op­posed t o mar­ket- cap weighted (or e ven equal weighted). In other words, a stock trad­ing at $100 will be mak­ing up 10 times more of the to­tal in­dex com­pared to a stock trad­ing at $10, re­gard­less of the size of the com­pany. AT& T is out as a stock split makes the price too low for in­clu­sion.

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