Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,431,449 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Dow Divisor

    0.01 sec.
Dow Divisor
A mathematical tool the Dow Jones Industrial Average uses to account for stock splits. Stock splits change the share price of a company without changing its underlying value, because it simply issues more shares. The DJIA, as a price-weighted index, calculates the average by adding the share prices together and dividing by the number of stocks that it indexes. If it did not have a tool like the Dow divisor, the average would become distorted every time a stock split occurs.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?   Financial browser?   Full browser?
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.