GM and Citigroup Booted from the Dow

2009-06-02 22:43:26 (GMT) (WiredPRNews.com - Business, News)

General Motors and Citigroup, whose headquarters are shown here, have been kicked out of the Dow Jones industrial average

The two corporations are taken out of the stock index on Monday.

Wired “PR News – A surprising move was made by the Dow Jones industrial average Monday. As reported by Reuters, once well respected corporations General Motors (GM) and Citigroup have been removed from the index and will be replaced by Cisco Systems Inc. and Travelers Co, respectively. The news comes on the heels of the announcement of GM’s decision to file for Chapter 11 bankruptcy protection.

John Prestbo, Dow Jones Indexes editor and executive director, is quoted in the report as stating of GM’s replacement, “We thought it was a fitting replacement for General Motors because Cisco with its products is really the pavement on the information highway and it’s helping shape the 21st century much the same way automobiles shaped American culture in the 20th century.”

The changes will reportedly go into effect Monday, June 8.

Photo Credit: Wikipedia User Americasroof