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Apple will replace AT&T in the Dow Jones Industrial Average

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The Dow Jones Industrial Average only accepts 30 members

Apple has been invited to join the Dow Jones Industrial Average, one of the most exclusive stock indexes in the world, according to The Wall Street Journal. AT&T is being removed from the Dow Jones to make space for Apple. The change will take place after the market closes on March 18th.

Apple's stock split made the move to the Dow Jones possible

Getting invited into the 119-year-old Dow Jones Industrial Average is the latest accomplishment for the world's most valuable company. Unlike the S&P 500 or the NASDAQ — where Apple currently sits — the Dow Jones Industrial Average only accepts 30 members at any given time. The Dow Jones Industrial Average doesn't have a strong representation of modern tech companies, with Intel and Microsoft — who joined in 1999 — being the two most prominent members of the index.

The Dow Jones Industrial Average is also price weighted, not weighted by the market value of member companies like other indexes. Apple's recent seven-for-one stock split which brought share prices down to around $100 last year had a lot to do with the company getting the invite to join the Dow. Likewise, AT&T's relatively low share price, currently at $34, is a big reason why it is on it's way out of the prestigious index.