Reply to post: Dow Jones

Power of iPhone 6 hype-gasm: Apple a sniff away from record stock high

Anonymous Coward
Anonymous Coward

Dow Jones

One thing that would help Apple's stock price from the split is if the stock is added to the Dow Jones Industrial Average. Previously Apple would not have been added because the Dow Jones doesn't weight prices so a high priced stock like Apple's would have too much influence over the value of the Dow. Post-split, it may be added at some future point when they decide they want to drop one of the current companies (perhaps due to reverse merger in the case of Pfizer) and need to look for a new one to add.

If a stock is added to the DJIA, its price will "automatically" go up because all funds or indexes that include the Dow 30 components will sell whatever stock is being removed and buy the stock being added. Most indexes use the S&P 500, but many funds still use the Dow as a component or offering. It wouldn't have a large impact, certainly less than a buck a share, but it does make a small difference.

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