Is Nvidia Set to Replace Intel in the Dow? Live Long and Prosper With This Stock Market Buzz!

To Add or Not to Add That is the Question

Decisions on additions and deletions to the Dow is made by the S & P Dow Jones Indices Index Committee. There are no specific rules for inclusion or exclusion much like the unpredictability of a Romulan's next move. But these Index Committee folks seek out companies with excellent reputations sustained growth and the ability to attract a large number of investors. It seems Nvidia could be beaming up to the Dow soon!

The Rules of Engagement

Companies can be deleted if they merge with another company or if they find themselves in financial distress like a Starfleet captain surrounded by Klingons. The Committee also values sector representation much like the Federation values diversity in its member planets.

The Price is Right for the Dow

Unlike the S & P 500 the Dow is price weighted much like using dilithium crystals to power a starship. If a stock's price is significantly lower than others it could be ousted faster than a redshirt on an away mission. The Committee wants to make sure the price ratios between Dow stocks don't warp out of control.