After Apple’s seven-for-one stock split this past June, the tech company will be joining the Dow Jones Industrial Average, and AT&T has been kicked out, the index announced Friday. The change will take effect on March 18.
Currently, the 30-member stock exchange had six tech companies: IBM, Verizon, Intel, Cisco and Microsoft, in addition to AT&T. After falling 4.5 percent last year, AT&T will be leaving the index.
According to Bloomberg, this move had been expected after Apple’s stock split, which increases the number of shares in a company while lowering the overall stock prices, along with an upcoming four-for-one split by Visa on March 19. Visa currently has the highest price per share, but the company’s upcoming split will bring down the price, helping to make room for Apple.
The Dow Jones is intended to be a barometer of the stock market, and before the two splits Apple’s stock price had been seen as too expensive.
“As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones Industrial Average, the most recognized stock market measure,” David M. Blitzer said in statement on Friday. “The DJIA is price weighted so extremely high stock prices tend to distort the index while very low stock prices have little impact. Apple’s split brought the stock price down closer to the median price in the DJIA. The Visa split will reduce the technology weight in the DJIA and make room for Apple.”
This is the first reshuffling since September 2013, when Goldman Sachs, Nike and Visa replaced Alcoa, Bank of America and Hewlett-Packard.