GM Dropped From Dow Average
June 08, 2009
Monday marked another historic day in the General Motors saga.
The automaker, which last Monday filed for Chapter 11 bankruptcy, has been removed from the Dow Jones Industrial Average after more than 80 years as an index component.
GM will be replaced by technology firm Cisco Systems. Banking giant Citigroup also is being dropped, replaced by Insurer Travelers.
Posted by Michelle Krebs at 11:02 AM under GM , News | Comments (1) | digg this | Seed Newsvine
The Dow Jones Industrial average is supposed to be an indicator of the performance of the market as a whole, with a wide range of companies from a wide range of sectors. Dropping a company just because it's doing poorly artificially inflates the Dow average. Yeah, you could select the top three batting averages on your baseball team, but it wouldn't be representative of how well, or poorly, your team is actually hitting. Shame on them.
Posted by: greenpony | June 08, 2009 at 3:13 PM