Divisor


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Related to Divisor: Zero divisor, Divisor function

Divisor

Used in construction of stock indices. Suppose there 10 stocks in an index, each worth $10 and the index is at 100. Now suppose that one of the stocks must be replaced with another stock that is worth $20. If no adjustment is made to the divisor, the total value of the index would be110 after the swapping. yet there should be no increase in value because nothing has happened other than switching the two constituents. The solution is to change the divisor; in this case from 1.00 to 1.10. Note that the value of the index, 110/1.1, is now exactly 100 - which is where it was prior to the swap.

Divisor

In division, the number by which another number if divided. For example, in the equation 8 / 4 = 2, the divisor is 4. This is used in indexes to account for stock splits and dividends. See also: Dow divisor.
References in periodicals archive ?
Considered one of Peru's highest conservation priorities, the Sierra del Divisor has long been recognized for its superlative biodiversity.
Left zero divisors are right zero divisors, if ab = 0 implies ba = 0.
G]) = 1 if and only if j ~ E + 1 where E is a maximal q-reduced divisor.
As noted above, the proper divisors of 30 are 1, 2, 3, 5, 6, 10, and 15, which add up to 42.
where [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] is a reduced divisor or an element of [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII].
8) The weekly benefit amount is based on total insurable earnings over a 26-week qualifying period, divided by the divisor, which is equal to the greater of a) the number of weeks worked; or b) the minimal entry requirements plus two weeks.
After each iteration the algorithm subtracts the divisor from the partial remainder, and if the result is less than 0, the previous value must be restored.
The divisor assumes arbitrary values and is a scaling factor that equates adjacent-period estimates of S&P 500 total market capitalization.
The long gallery was divided by two walls turned into sculptures: Divisor A (Divider A) and Divisor B, both 2000.
The average is calculated by adding the closing prices of the component stocks and using a divisor adjusted for various factors.
Contract awarded for Sports facilities maintenance construction mar divisor
The divisor used to calculate the Indices from their components' prices on their respective home exchanges will be changed prior to the opening on October 15.