Does the Dow Need Bank of America?

The following video is part of our "Motley Fool Conversations" series, in which Fool contributor and personal finance analyst Dan Caplinger discusses topics from around the investing world.

Today, Dan looks at Bank of America in the latest installment of a Motley Fool series in which we examine how each Dow stock affects the world-renowned blue chip average. The banking giant has the lowest share price of any Dow component, and because of the way that the Dow Jones Industrials is calculated, that gives B of A almost no influence over the average. Dan discusses whether that makes sense and speculates about the possibility of another bank taking B of A's place in the Dow.

Smart investors are looking closely at banking stocks like B of A. Let me invite you to read the Fool's special report, "The Stocks Only the Smartest Investors Are Buying ," to learn about promising bank stocks with plenty of growth potential. It's free, but only available for a limited time, so click here today to claim your copy.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Wells Fargo, Bank of America, Citigroup, and JPMorgan Chase. Motley Fool newsletter services have recommended buying shares of Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.


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updated 9 hours ago Sponsored by:
DOW 17,172.68 -107.06 -0.62%
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Related Tickers

9/22/2014 4:31 PM
^DJI $17172.68 Down -107.06 -0.62%
DOW JONES INDUSTRI… CAPS Rating: No stars
BAC $17.03 Up +0.08 +0.47%
Bank of America CAPS Rating: ****
C $53.04 Down -0.44 -0.82%
Citigroup Inc CAPS Rating: ***
JPM $60.91 Down -0.20 -0.33%
JPMorgan Chase & C… CAPS Rating: ****
WFC $52.90 Down -0.46 -0.86%
Wells Fargo CAPS Rating: ****

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