Title
Document Type
Blog Post
Publication Date
3-9-2015
Contents
The DJIA (Dow Jones Industrial Average) is an index of 30 companies that are picked to represent the broad economy. As this Fox Business article notes, Apple is replacing AT&T in the index. Given that Apple is the largest company by market cap, why is Apple just now entering the index? The answer is that the Dow is price-weighted, so Apple's recent 4:1 split brought the price low enough, such that it would not unduly influence the overall index movement.
Recommended Citation
Dolvin, Steven D., "Apple Added to the Dow" (2015). All Chapters. 130.
https://digitalcommons.butler.edu/jmdallchapters/130