Will apple replace GM in DOW?

[rgG]

Article Accelerator wrote:
[quote=rgG]
Cisco will replace GM in the Dow.

I wonder what criteria were used. Apple has higher capitalization ($123 B vs. 113 B.) and a stronger balance sheet than Cisco.

http://www.1728.com/dowjone2.htm
There are no specific criteria by which a company is chosen to be on the Dow 30. Generally, the Dow 30 is composed of very large companies that represent a variety of industries in the economy. You will never see the Dow 30 list consisting of companies that are all in the same industry.

Any decision to add or remove any of the companies which make up the Dow 30 is made by the editors of the Wall Street Journal.
Also, there is no particular schedule by which Dow 30 companies are changed. The list of Dow 30 companies went from June 1, 1959 to August 9, 1976 completely unchanged. Then again changes have been made in less than 1 month. (The Dow 20 remained unchanged for only 3½ weeks from December 7, 1925 to December 31, 1925.)

One of the major reasons for removing or adding companies to the Dow 30 list is to reflect major changes in the economy. Some of the companies that were on the list such as Remington Typewriter, Victor Talking Machine and Pacific Mail Steamship now seem very out of place in today's economy. Two of the more recent additions, Microsoft and Intel, reflect the high technology aspect of the 21st century economy.