Introduction to Personal Investing
Why are companies removed from the list of companies on the Dow?
Individual companies that compose the DJIA are removed because of economic and managerial trouble. Others no longer offer a good representation of index components reflective of the American economy at large, and must be replaced by healthier, more representative companies. Still other companies tracked by the Dow are removed because their stock price is very low, and not as relevant as other firms in the average.