# 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 ?
creating divisibility with a concomitant abandonment option arising when
As with Ramanujan's proof of the first three congruences, Ono's proof was abstract and so shed little light on just why the partition numbers have these divisibility properties.
The notions of the divisibility of truth and the plurality of Christian religions tend to raise debates within Christian churches even today.
As illustrated in Table 3, no identifiable relationship exists between divisibility and successful settlement, and only a very weak connection exists between mediation and success, and ethnicity and success; neither of which was statistically significant.
Bebchuk, "On Divisibility and Credibility: the Effects of the Distribution of Litigation Costs over Time on the Credibility of Threats to Sue," mimeo, Harvard Law School (1996).
Moreno, Divisibility properties and new bounds for exponential sums in one and several variables, preprint.
Schestag pursues Lacoue-Labarthe's critique by tracking divisibility, partitions, parts, etc.
While some of the small-scale industries may be efficient because the divisibility of technology and the processes leads to specialisation in sub-processes at the small scale, yet the efficiency in a number of industries may be more apparent than real; the inefficient enterprises may have survived just by avoiding taxes or exploiting labour.
These features include homogeneity, divisibility, storability, durability, and scarcity.
Starting from what he had learned of split-brain experiments on humans (to relieve intractable epilepsy), Parfit claimed they showed that, contrary to our intuitions, the unity of the self did allow for divisibility.
As a related matter, such divisibility is put at a premium in the context of a multi-building complex such as One Twenty Five High Street.

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