Apple,
the biggest US Company by market value, will be included in the Dow Jones
Industrial Average from 19 March.
Despite being
one of the most successful US firms, Apple was excluded from the Dow because
its high stock price would have distorted the price-weighted index.
But a change in
the structure of Visa shares, which is in the same sector, has made room for
the iPhone maker.
From 18 March,
Visa shares will be split four-for-one, which reduces the weighting of the
information technology sector in the overall index.
"As the
largest corporation in the world and a leader in technology, Apple is the clear
choice for the Dow Jones Industrial Average," said David Blitzer, chairman
of the Index Committee at S&P Dow Jones Indices.
Apple's own
seven-for-one stock split last June also helped pave the way for it to join the
Dow Jones.
The Dow Jones
Industrial Average is calculated by taking the sum of the share prices of its
30 stocks and dividing the total by a number known as the Dow Divisor.
The divisor is
continually adjusted to accommodate structural changes to companies and to
maintain continuity.
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