General Motors, Citigroup Being Removed from Dow Jones

The impending bankruptcy of General Motors and the magnanimous government assistance of Citigroup banks means both will be removed Monday, June 8, from the computation of the Dow Jones Industrial Average.

GM bankruptcy proceedings, which are expected to be finalized early this week, automatically disqualify the maligned automaker. Representatives of Dow Jones are hopeful that the slow stabilization of Citigroup means that it can be re-added to the index in the future.

The Dow Jones is the most common index referenced among those monitoring the New York Stock Exchange. It is compiled by looking at the trading averages of 30 of the most widely known and traded public companies on the U.S. market. When individuals talk about the stock market being up or down, they are usually referring to the Dow Jones.

Source:

Reuters: General Motors, Citigroup to Be Cut from the Dow