How to Qualify to Be on the Dow Jones

How to Qualify to Be on the Dow Jones
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Ask the owner of any business to name their goals and you'll likely get responses that include making money, being respected and the unspoken desire of most serious entrepreneurs: amassing power. If your mission transcends these, there's a good chance you're aiming higher and want to see your company's name amid the prestigious Dow Jones 30. You can make it happen if you pursue your dream with the tenacity it took to jump start your company in the first place.

Study the current 30 stocks on today’s Dow Jones so you understand how firms made this exclusive list. Obtain annual reports and financial documents for each to track their rise and fall. Learn who’s on their board of directors list. Compare the industry each represents to track trends.

Analyze the Dow Jones history to understand how the conglomerate has evolved, from Dow, Jones & Company’s hand-delivered stock exchange bulletins in 1882 through the company’s launch of The Wall Street Journal in 1889 and the big announcement--in 1896--that the company was going to begin publishing a Dow Jones Industrial Average.

Steer your company in the right direction. Make wise investment decisions. Use technology efficiently to push your firm forward. Acquire other companies and executive talent as opportunities present themselves. Maintain a large corporate headquarters building to house administrative staff, research, development and financial experts. Open satellite offices in major metro markets--Boston, New York, Dallas, San Francisco, Chicago, etc.

Go public. File a registration statement with the Securities and Exchange Commission (SEC). Anticipate the SEC’s investigation into your company’s background as the agency searches for inaccurate, incomplete or misleading information that doesn’t meet legal and financial litmus tests. Be patient but hopeful as you await word from the SEC giving you the go-ahead.

Await the underwriter's collective decision to learn the per-share price that's been set for your stock. Expect this process to take another month--longer if the information on your registration proves problematic at any time during this process. Issue stock once you’ve received the underwriter's official per share price.

Grow your company. Garner favorable publicity. Strive to be a blue-chip-caliber firm known for making lots of money without taking too many risks along the way. Acquire companies and diversify so your public image, power and reputation grow. Become a favorite of Wall Street Journal editors, as they are a conduit to being considered for inclusion on the Dow Jones.