CNBC’s latest article quoting DataTrek’s Nick Colas by Jeff Cox:
….”Amazon, Google, even Facebook are probably never going to see the inside of the Dow, just because of price weightings,” said Nick Colas, co-founder of DataTrek Research. “Facebook at the margin could have been put in. But the worry is if it ends up being like Google, it will swamp the index.”
The Dow is considered a price-weighted index. The higher a company’s stock price, the more influence it has on the Dow’s direction”…..
Read the whole article here on CNBC!