Divisor

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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 ?
Tipperary acting manager Nessa Joyce said: "We divide races to help the industry and often we get calls from trainers days beforehand asking us to divide certain races when the number of entries are big.
His use of inclusive language (though not for God), his concern that the church has fallen short in erasing the divide between male and female (Gal 3:28), and his concern for justice issues suggest progressiveness.
Although divorcing couples usually disagree about how to divide their property, local statutes and case law largely determine value and proportionate ownership.
All of these resources offer wonderful opportunities for unions and libraries to form partnerships for bridging the digital and information divide.
It divides into AB Partnership, BC Partnership and CD Partnership.
Appu Kuttan, Chairman and Founder of CyberLearning, the global nonprofit leader in digital education, was yesterday awarded the prestigious "2006 Champions of Digital Literacy Inspiration Award" for making the most contributions globally to bridging the digital divide in 2006.
These divides derive from different visions of America, colliding world views that have gridlocked our government for too long.
When a cell divides, the nuclear membrane breaks down, allowing identical sets of chromosomes to segregate into the cell's two progeny.
LOS ANGELES -- Elected officials, policymakers and experts met today in Los Angeles to examine the state's growing economic, geographic and digital divides.
When a normal cell divides, it painstakingly creates a pair of cells having the same number of chromosomes.
Muslims are now bottled up on the eastern bank of the Neretva River, which divides the city; the Croats control the west and access to Croatia and the coast.