DOW Component Replacement

WaveTech

Anybody know that if DOW components C and GM replaced with GS or HON, what will happen to the DOW index? I know DOW index is calculated and weighted by price, so is that true the index will be higher if the replacement become true?

ByStander

Anybody know that if DOW components C and GM replaced with GS or HON, what will happen to the DOW index? I know DOW index is calculated and weighted by price, so is that true the index will be higher  ...
WaveTech 发表于 2009-5-30 18:18

I think the index should be the same. Just the weights of individual stocks will be different. For example, if before replacement 5% price increase in IBM would cause DOW up 1%, now the same price increase in IBM might just lead to 0.5% DOW increases