Apple is set to make its long-awaited debut on the Dow Jones Industrial Average.
The biggest US company, in terms of market value, will be included on the stock market barometer from March 19th. It is expected to take the place of the AT&T, which has been trading on the Dow Jones since 1916. AT&T's departure means that Verizon is the only telecommunications company represented on the index.
Apple has been excluded from the Dow Jones for a number of years, despite being one of the most successful US firms in history. Its success was a major reason why it has never been previously listed as its high stock price would have distorted the price-weighted index. However, changes in the structure of Visa shares has made room for the company.
Commenting on the announcement, Michael Chadwick, chief executive of Chadwick Financial Advisors in Connecticut, said: "The Dow is supposed to be the dominant companies in each different sector of the economy and I don’t think anybody can argue that Apple isn’t by far the dominator in the phone sector.
"The digital age is taking over. It’s going to be a function of those who can adapt and change."
Apple's unstoppable rise
Apple's rise is seemingly unstoppable with products such as the iPhone and iPad propelling the company to levels previously unheard of. In January 2015, Apple posted a massive $18 billion (£11.8 billion) net profit for its fiscal first quarter. It represented the highest ever profit made by a public company in a single quarter.
The figure dwarfed the second highest of $15.9 billion set by ExxonMobil in the second quarter of 2012, according to research by Standard and Poor's. Apple put the success down to all-time revenue from iPhone and Mac sales.
Following the Dow Jones announcement, Apple's share price grew by 0.15 per cent to 126.60 on the Nasdaq.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.