When Will Apple Join the Dow?

Oct 12, 2011
J. Webster
Comments Off on When Will Apple Join the Dow?

Yes, it’s strange Apple isn’t in the Dow Jones Industrial Average, and so many other perhaps less relevant companies are. But now Apple’s stock is too large for it to be included, if it were, it would throw off the average with any changes in the stock price. What could Apple do to change that and be added to the Dow? Well, they could split its stock but why would they do that?

Now that it’s the biggest company in America, you might think it would make sense for Apple to be added to the Dow Jones Industrial Average. But it may have to stand alone.

The stated purpose of the DJIA — a joint venture of CME Group and Dow Jones, which employs this blogger — is “to provide a clear, straightforward view of the stock market and, by extension, the U.S. economy.”

It sure seems like the biggest public company in the US, pumping products into the hands of consumers across America, would be a key part of such an index, but there’s a major problem with adding Apple: Its stock price is just way too high.

At $420 and climbing, it would be the highest-priced stock in the index, with IBM a distant second at $176.

Full article at the WSJ.

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