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Wall Street: the Dow should absorb the Amazon and Alphabet

via:博客园     time:2015/12/23 9:30:20     readed:1002

华尔街:道琼斯指数吸收亚马逊和华尔街:道琼斯指数吸收亚马逊和 Alphabet

American capital market is the most famous stock index is

According to the U. S. financial news site, MarketWatch reported. Earlier this year, apple the latest become stocks in the Dow Jones index, bring a breath of fresh air into the old index. But Wall Street many of the industry that constituent stocks in the Dow Jones index also need to do more work and to be able to improve and the correlation in the capital market.

Some industry called, let the alphabet and Amazon, the two companies become the constituent stocks (Dow Jones index a total of 30 constituent stocks of the company).

Alphabet is a recent restructuring of a new company, will become the holding company of Google and some innovative research and development business. If the above proposal is achieved, the Dow Jones Industrial Average will include the following technology industries: apple, IBM, Intel, CISCO.

Wall Street in the United States engaged in data analysis

Alphabet's current capital market capitalization of $522 billion 400 million, the Dow Jones index will become the second largest market value after apple. Amazon's market capitalization of $fourth, will be ranked 314 billion. According to statistics, the median value of the Dow Jones index of 30 companies for $156 billion.

Of course, if the Alphabet and Amazon to enter the index, is bound to have two companies being squeezed out of stocks. Hamze believes the industry, such as Travelers, so the market value of smaller companies should be adjusted out,

And from industry representatives, it is possible to make room for the Amazon and Alphabet other two technology companies are IBM and CISCO, the former market value of $133 billion, the latter is $136 billion. Compared with the two companies, and other technology stocks market capitalization to much larger, such as Apple's more than $600 billion, Microsoft is close to $450 billion, companies such as visa for $190 billion, Intel Corporation for $165 billion.

In 2015, alphabet and Amazon shares hit a record high. In addition, the two companies almost meet the Dow Jones index almost all the requirements, such as good reputation and growth prospects, in the United States market income as well as investors in the common interest.

However, the two companies are relatively high prices may become obstacles to their entry into the dow. Because the Dow Jones industrial average is a price weighted index, higher alphabet and Amazon shares may bring inappropriate index influence to the enterprise, and distorted representation of the industry sector.

According to reports, before entering the constituent stocks, Apple has in the last six months split, the share price from $645 adjustment for $92, but then the Dow Jones index has also asked apple like visa. 4:1 split.

U.S. media pointed out that if the Alphabet and Amazon to enter the Dow, the two companies will undoubtedly face stock split.

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