When does a company's stock become a Dow Jones Index stock. What are the elements to be considered and who decides on this?
Any stock of the Dow Jones Index of couse has to be of a major
size compared to most of the stocks in the S&P 500. Another
criterion is the final combination of the stocks. The comanies have
to be as representative as possible for the US economy. That also
why Bank of America an Chevron replaced Altria and Honeywell
earlier this year. Dow Jones & Co. ist still responsible for
the composition of the DJIA.
the editors of the Wall Street Journal decide what
companies are included in the Dow Jones Industrial Average