Goldman Sachs Is Added to the Dow Jones Industrial Average
In September 2013, Goldman Sachs is added to the Dow, one of the most widely quoted and recognized stock market indices worldwide.
Goldman Sachs was added to the Dow Jones Industrial Average (DJIA or “the Dow”), along with Visa and Nike in September 2013.
The DJIA is designed to be a collection of blue-chip companies that represent the core of the US economy. The 2013 move represented part of the Dow’s long-term effort to diversify the index in order to better represent the broader economy. According to the Index Committee, “while stock selection is not governed by quantitative rules, a stock typically is added to the Dow only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.”
Changes in DJIA constituents are relatively infrequent, with the last three-member exchange occurring in 2004. At the time of the announcement, Goldman Sachs entered as the third-largest company in the index, behind leader IBM and the newly-added Visa.
The Dow Jones Industrial Average dates to 1896 (the same year Goldman Sachs joined the New York Stock Exchange) and originally comprised 12 stocks. The index covers all industries except transportation and utilities.
This article was originally published as part of a series commemorating the 150th anniversary of Goldman Sachs' founding in 1869.