Why Isn't Facebook in the Dow Jones Industrial Average?

The video discusses how the Dow Jones Industrial Average is determined by a committee that meets a few times a year, often making changes due to corporate shifts. The Dow is meant to represent the US economy with 30 major companies, though not all sectors are equally represented. Technology is well-represented, but sectors like food are not. The video also explores the potential inclusion of Facebook, a young company with small revenue, and the possible removal of American Express due to its recent struggles. Wells Fargo is mentioned as a potential replacement.

Who is responsible for determining the composition of the Dow Jones Industrial Average?

• A government agency

• A committee

• Individual investors

• The stock exchange

Why is it important for a company to be included in the Dow Jones Industrial Average?

• It ensures government subsidies

• It guarantees higher stock prices

• It represents the company's significance in the US economy

• It provides tax benefits

Which sector is currently well-represented in the Dow Jones Industrial Average?

• Healthcare

• Technology

• Energy

• Food

What is one reason against including Facebook in the Dow Jones Industrial Average?

• It is a private company

• It is based outside the US

• It has too many employees

• It is a very young company

Which company is speculated to be removed from the Dow Jones Industrial Average due to poor performance?

• Wells Fargo

• Facebook

• DuPont

• American Express