Apple comes to the Dow Jones Industrial Average, will replace AT&T

Apple will be gaining a place in the Dow Jones Industrial Average, CNBC reports. Expected to take place after the market closes on March 18, Apple will replace AT&T in the DJIA with the opening of trading on March 19. “The DJIA is price weighted so extremely high stock prices tend to distort the index while very low stock prices have little impact,” noted David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. He went on to outline how a recent Visa 4-for-1 stock split reduced the “technology weight” in the index, effectively making room for Apple after its 7-for-1 stock split last June brought its stock price down closer to the DJIA median price. With a $736 billion market capitalization, Apple is currently the largest publicly traded company in the world.

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