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The DOW 30 has 30 successful companies in it. If one of these companies falters it will be removed from the index and replaced by an up-and-coming company. It
by ape4 4y ago
The DOW 30 has 30 successful companies in it. If one of these companies falters it will be removed from the index and replaced by an up-and-coming company. It would be there even if people invested or not.
- scarmig 4y agoHow does a company faltering or succeeding end up being reflected in its membership of the Dow? If relative shifts in stock price are the main causal mechanism, then that's exactly the issue: universal passive index investing (roughly) means that there won't be relative shifts in price.