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Description:  Kraft  KFTis being replaced in the Dow Jones Industrial Average by UnitedHealth Group  after the close of trading  Sept. 21. It’s the first change in the composition of the widely quoted index since 2009. But while UnitedHealth represents an important sector of the economy, it may not have seemed the most logical choice, given the continued outperformance of Apple Inc.


Date: Sep 15, 2012


Questions for Discussions:

  • Why does Apple not qualify for entry to the Dow?
  • How would its inclusion have affected the index over the past year?
  • Why would the company not split the shares in order to better qualify for entry to the Dow?
  • How does all of this affect stockholders?

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