Apple’s Stock Price Is Too High For The DJIA

by Christopher Paul on September 21, 2011

From Bloomberg:

“Apple, trading at about $420, would have the largest weighting in the 30-company measure because Dow companies are ranked by stock price, not market value. Replacing Kraft Foods Inc. with the Cupertino, California-based company would drive International Business Machines Corp. (IBM) down to 9.2 percent from 11.6 percent of the Dow, Bespoke said in a report today. IBM closed at $173.13 yesterday.

“Don’t hold your breath,” Bespoke, based in Harrison, New York, wrote in a note to clients, citing speculation today that Apple may enter the Dow. “If the stock were added to the index without a split in the shares, it would have a disproportionate weight in the index, making it more like the Dow Jones Industrial Apple.””

Who would have thought that?

Apple’s Stock Price Is Too High for Inclusion in Dow Average, Bespoke Says – Bloomberg via 9to5 Mac

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