Apple To Dow Jones Later This Month

The Dow Jones industrial average said Friday that Apple will join the legendary stock index later this month.



The addition of the globe's largest company to the 119-year-old Dow Jones, which is an index of only 30 American companies, has been anticipated for some time. The iPhone creator will be replace telecom giant AT&T, which has been a part of the Dow since 1916.



Apple will join the Dow after the closing bell March 18.



"As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones industrial average, the most recognized stock market measure," David M. Blitzer, the managing director and chairman of the index committee at S&P Dow Jones indices, noted in a statement Friday.



Apple implemented a 7-for-1 stock split last June, bringing individual stock prices down from above $700 a share to $100. The valuation of the company stayed the same for the split – If an investor had one share before, the shareholder then had seven new shares.



Credit card company Visa is planning a similar 4-for-1 split the same day Apple begins trading on the Dow, so the index decided to add Apple to balance itself out.



"Apple's split brought the stock price down closer to the median price in the DJIA," Blitzer continued. "The Visa split will reduce the technology weight in the DJIA and make room for Apple."



Visa was a player the last time the Dow changed up in September 2013. The credit card processor was added alongside shoemaker Nike and financial titan Goldman Sachs. Hewlett-Packard, Bank of America and aluminum manufacturer Alcoa were dropped.



Shares in Apple jumped Friday morning after the news broke, although prices fell toward Thursday's close amid news of iPad delays and fraudsters possibly using Apple Pay's mobile payment system.



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