Wikimedia Commons
Happy birthday, Dow!
On Thursday, the Dow Jones Industrial Average turned 120.
When its was created in 1896, it had about a dozen industrial stocks.
Apple's addition to the current list of 30 American conglomerates back in March 2015 shows just how far the index has come.
Apple took the place of AT&T, which was popularly known as American Telephone & Telegraph when it originally joined the Dow in October 1916.
This index has seen a lot of turnover in its history. And only one of the original 12 members continues to hold a spot in it.
What it did: It formed as a trust after several mill owners in Texas and Arkansas combined syndicates to regulate the price of seeds. It became a corporation in 1889 after the trust was dissolved through a lawsuit.
Where it is now: It evolved into a company that's now part of Unilever. The original company was dropped from the Dow in 1901.
Sources: Scripophily, Wikipedia
American Sugar Companyloppear/Flickr
What it did: It was the largest American company in the sugar-refining business in the early 20th century, with investments in the Caribbean. It was established in 1891 with $50 million in capital.
Where it is now: It has since been acquired by American Sugar Refining, whose products include Domino Sugar. It was dropped from the Dow in 1930.
Source: Wikipedia
American Tobacco CompanyWikimedia
What it did: The American Tobacco Company acquired over 200 competitors to become the dominant player in the industry. It was founded in 1890.
Where it is now: The Supreme Court ordered it to dissolve following an antitrust lawsuit. It splintered into many smaller companies and renamed itself Fortune Brands. It was dropped from the Dow in 1985.
Source: Wikipedia
Chicago Gas CompanyCourtesy of Google Maps
What it did: The company bought various gas and heating companies in Chicago with a capital of $25 million. It was founded in 1887.
Where it is now: It was acquired 10 years later and has evolved into a subsidiary of Integrys Energy Group, a publicly traded company. The original company, after merging with Peoples Gas, was dropped from the Dow in 1915.
Sources: Wikipedia, "Chicago Securities" Volume 4
General ElectricWikipedia
What it did: It was formed as an electricity company in 1892 in a merger that included business owned by Thomas Edison, the inventor of the light bulb.
Where it is now: It evolved into a multinational giant with several business including power, oil and gas, aviation, and transportation. In April 2015, it began the process of selling most of its GE Capital assets to create a slimmer company.
It's been in and out of the Dow and is still listed.
Sources: Wikipedia
See the rest of the story at Business Insider
See Also:
- The amount of new stock sold by corporations has fallen off a cliff
- GOLDMAN: These are the 21 stocks that matter most to hedge funds
- GOLDMAN: Hedge funds are betting billions that these 16 stocks are going to implode
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