"Amazon's Inclusion in the Dow: A Game-Changing Upgrade"

The Dow Jones Industrial Average's recent shakeup involving Walmart, Walgreens, and Amazon highlights its outdated methodology and lack of influence compared to the S&P 500. Walmart's stock split led to its reduced weight in the Dow, prompting the addition of Amazon and the removal of Walgreens. However, being added to the Dow is unlikely to impact Amazon's stock price due to the Dow's minimal financial market share compared to the S&P 500, which measures companies by their total stock market value. The Dow's calculation based on share prices, as opposed to market value, necessitates adjustments like the Dow Divisor. This episode underscores the Dow's antiquated nature and the S&P 500's modern relevance in the financial market.