Amazon to be added to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance
Amazon.com Inc. is being added to the Dow Jones Industrial Average, joining Apple, Walt Disney, Walmart and other companies that make up the 30-stock average.
The ecommerce giant will replace drugstore operator Walgreens Boots Alliance in the Dow before the open of trading on Monday, S&P Dow Jones Indices said Tuesday.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitMITMIT Technology Leadership and InnovationVisitThe shift was prompted by Walmart's decision to do a 3-to-1 stock split, which will reduce its stock's weighting in the index. The Dow is a price-weighted index, so stocks that fetch higher prices are given more weight.
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Seattle-based Amazon will join the Dow on the same day that Walmart executes its stock split.
«Reflecting the evolving nature of the American economy, this change will increase consumer retail exposure as well as other business areas in the DJIA,» S&P Dow Jones Indices said.
Amazon's entry into the Dow, Walgreens' exit and Walmart's stock split will cause a ripple effect on the weighting of the Dow stocks. Once the shift is completed, Amazon's weight in the Dow will rank 17th out of the 30 stocks in the index. Walmart's weighting will drop to 26 from 17. UnitedHealth Group will remain the most heavily weighted stock in the index.
Also before the start of trading on Monday, ride-sharing
