The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
While indexes like the Nasdaq and S&P 500 are market weighted -- meaning each stock's weighting in the index is roughly proportional to its market cap -- the Dow Jones Industrial Average uses a wonky price weighting mechanism that can leave certain stocks over- or underweighted. Today, we're looking at Intel and how its movements influence the Dow. While Intel is 3.5% of the Dow's value, it's only weighted at about 1.6% of the index. That leaves it as the 24th highest weighted Dow stock, despite being the 12th most valuable company in the index. To see more analysis on Intel and how its weighting stacks up to other tech peers in the Dow, watch the video below.
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