Who selects the stocks included in the DJX?
The editors of The Wall Street Journal select the components of the index. The DJIA now represents about one-fifth of the $10 trillion-plus market value of all U.S. stocks and about one-fourth of the value of stocks listed on the New York Stock Exchange. In choosing a new company, the WSJ editors look among substantial industrial companies with a history of successful growth and wide interest among investors. The components are rarely changed. The most frequent reason for changing a stock is that something is happening to one of the component companies, such as being acquired. Whenever one stock is changed, the remainder are reviewed.
