Goldman Sachs Group Inc, Visa Inc. and Nike Inc. had been added to the Dow Jones Industrial Average. The three firms would replace Bank of America Corp, Alcoa Inc. and Hewlett-Packard Co. in the largest reshuffling since April 2004.
The changes would boost both banking and computer companies influence in the 30-member index. This was after the fifth biggest US bank by assets and the biggest payment network join seven other technology and financial firms. This included firms like JP Morgan Chase & Co. and Cisco Systems Inc.
Bank of America would exit even after gaining 109% in 2012 which was also Dow's biggest gain. The changes would be effective after the close of trading on September 20. The move was announced today by a committee that included editors of the Wall Street Journal.
Dow Jones proportions had been determined by stock price rather than market value. Therefore, this would mean that the shares of Visa and Goldman Sachs would be around seven times the weighting as the constituents they would replace.
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