Apple will replace AT&T on the Dow Jones Industrial index on March 19.
The index has 30 of the largest public companies in the US.
Via the S&P Dow Jones Indices website, here’s the eligibility criteria:
“While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors. Maintaining adequate sector representation within the index is also a consideration in the selection process for the Dow Jones Industrial Average™. Companies should be incorporated and headquartered in the U.S. In addition, a plurality of revenues should be derived from the U.S.”
The most valuable company in the world, with a market cap of around $US750 billion, clearly checks all these boxes.
David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, said in Friday’s press release: “As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones Industrial Average, the most recognised stock market measure.”
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.