GM could have influence on Dow Jones
GM (General Motors) is facing bankruptcy problems, thanks to recession and now there are more problems. President Obama is looking forward to the problems to the company but it is more likely that GM would be removed from the Dow Jones Index.
Executive John Prestbo from Dow Jones was quoted as hinting that the removal was almost evident and could not be avoided possibly, not even by any industrial measures. The 30 stock exchange will probably operate with only 29 weights for a small period of time, before the weights are reanalyzed to round off the figure, with another inclusion from the leading stock values.
LA times has an article stating the same and quotes an example that in 1999, INtel replaced Goodyear rubber company in the 30 index. The decision is impending and will be updated soon.
Tags: general motors