There is talk around the ol’ internet watercooler that General Motors and Citigroup are about to be kicked off the Dow Jones Industrial Average due to their lackluster performance and long term outlook. Both of the companies stocks are trading around a $1 with Citigroup taking the title of the first stock to be traded on the index as a penny stock. Since the Dow follows 30 of the largest and most widely held public companies in the United States, would Apple (AAPL) and Google (GOOG) take GM and Citigroup’s place if they are removed?
General Motors is the longest continuous fund on the Dow Jones with a 1925 induction date, but the stock has never traded this low related to the overall market; even after the Dow Jones saw mini-crash in 1988. Citigroup was added in 1997 under the name Travelers Group but more recently been part of the US meltdown. While both companies probably represent Americans’ financial outlook accurately, the two companies simply do not meet the basic guidelines for a Dow Jones stock.
