Apple has been picked to replace AT&T in the Dow Jones Industrial Average stock market index, which consists of 30 major US companies.
The change will be made starting on Tuesday, March 19 and was caused by another Dow company, Visa, splitting its stock by 4-for-1 around the same time. CNBC states:
The DJIA is price weighted so extremely high stock prices tend to distort the index while very low stock prices have little impact," said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices in a press release. "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. Among the current DJIA constituents, AT&T has one of the lowest prices."