3 Stocks That Could Be Kicked Out of the Dow -- and the Companies That May Replace Them
For more than 127 years, the Dow Jones Industrial Average (DJINDICES: ^DJI) has been one of Wall Street's top barometers of stock market health. What began as an index that featured 12 predominantly industrial companies in the late 1800s is now comprised of 30 multinational businesses from a variety of sectors and industries.
However, the Dow Jones isn't without its flaws. Specifically, it's a share price-weighted index, not a market cap-weighted index like the S 500 and Nasdaq Composite. In simple terms, the higher a component's share price, the more influence it has within the Dow.
Image source: Getty Images.
Source Fool.com