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 ?
Another important concept the children practiced was the divisibility rules.
Bondesson concerning infinite divisibility of powers of a gamma variable.
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 consent in principle to, let alone the practical realization of, ecumenism is, however, inseparable from a recognition of the divisibility of truth.
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).
These features include homogeneity, divisibility, storability, durability, and scarcity.
A range of activities that promote the understanding of divisibility rules are provided.
4 About the three-zone electron structure and the divisibility of charge
divisibility of the tablets / capsules, solubility in the mouth, etc.
Their topics include divisibility, polynomial congruences, quadratic reciprocity, the geometry of numbers, and algebraic integers.
The divisibility theory of commutative rings is a fundamental and persisting topic in mathematics that entails two main aspects: determining irreducibility and finding a factorization of the reducible elements in the ring.
When in I, chapter 4 Aristotle refutes Anaxagoras's theory of the infinite divisibility of bodies, Thomas observes that this contradicts the division of the continuous ad infinitum, but he solves the difficulty by noting that natural bodies are not infinitely divisible, at least not while retaining their specific nature.