GM And Citigroup Out Of Dow

After General Motors bankruptcy filing yesterday, the Dow Jones Industrial Average will no longer have it as a component. For 83 years GM has been a cornerstone in the Dow Jones Industrials Average but no more. Citigroup will also be removed out of the index next week.

Taking both GM and Citigroup's place will be Cisco Systems (CSCO) and Travelers Insurance (TRV) on June 8, 2009.

The DJIA index is a price-weighted index of thirty components that have a weight assigned to the individual stock comprising the index. It is computed based on the most widely held companies in the US. You can read more about what stocks make up the Dow Jones Industrial Average.

You can also read Kerrys "Let The Automakers Go Bankrupt" article that was written back in November 2008 which seems on par with what the Obama administration is pushing forward.