What's going on?

Industrial conglomerate General Electric (GE)�s stock rose 15% on Monday, despite the company warning investors that its annual profit would be less than expected. Plus, it announced that a new CEO�s taking the reins.

What does this mean?

Once one of the largest companies in the world, GE�s been on a downward slide for years. As a big, sprawling conglomerate, GE has been slow to adapt, failing to sever the struggling limbs of its businesses before the whole thing became sick. Under the previous CEO, GE�s value dropped by more than half � investors are likely hoping that a new CEO will speedily turn things around.

GE was the only remaining original member of the Dow � a stock market index that started tracking the performance of 30 public companies in 1896 � but, since June, has no longer been included (its stock has been going in the opposite direction to the Dow).

Why should I care?

For markets: Nothing tastes as good as slim feels.

Conglomerates aren�t cool anymore. They�re all shedding the deadweight, shooting to be leaner, meaner profit machines (including GE). Some investors believe that complex companies should be cheaper (in something called a conglomerate discount) � so smaller companies that focus on fewer areas tend to be more valuable. And other conglomerates � like DowDuPont, Europe�s Siemens, and Maersk � have been slimming down and focusing their businesses.

The bigger picture: Two is better than one.

A conglomerate with a complicated name (if not business), Germany�s ThyssenKrupp is splitting in two. Activist investors at the company thought it was too complex and needed a more agile structure to be able to jump on opportunities as they come. ThyssenKrupp�s inability to do so thus far has led to weak profit growth. So the simplified structure is slated to be a good thing for both newly-formed companies, and give shareholders the best value for their money.