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 ?
An understanding of the approach to determining whether a number is divisible by four or eight can be derived from the patterns evident in the multiples of four and eight.
Then for n to be super Niven, n must be divisible by k for all k [less than or equal to] m.
We have shown for the triangle you can start at any vertex, go clockwise or counter-clockwise around the vertices, writing down the three digit number that results and you get a number divisible by 3.
Ramanujan also discovered that starting with the 5th partition number, every 7th partition number is divisible by 7, and starting with the 6th partition number, every llth partition number is divisible by 11.
For social events and conferences, the hotel will have 2,255 square meters of flexible meeting space, including a 1,200-square-meter grand ballroom, divisible into five sections; a junior ballroom, divisible into two sections; two 130-square-meter meeting rooms, each of which will be divisible into two sections; five individual meeting rooms offering 75 square meters of space each; and a board room.
These cases hold that a miltary pension earned during the marriage is divisible as community property.
According to the press release about the agreement it is revealed that the Share of Balochistan and the NWFP will be increased by allowing an additional subvention 'or' grant, distributing 10 per cent of the divisible pool between them.
Prime Minister Jean Chretien disagrees: "If Canada is divisible, Quebec is divisible.
Annual policyholder dividends are paid in a manner that identifies divisible surplus and distributes it in approximately the same proportion as the contracts are considered to have contributed to divisible surplus the "contribution principle").
IMGRC includes all of the resort enterprises of the Mescalero Apache Tribe including Casino Apache Travel Center, Ski Apache and IMGRC's new resort, which opened on March 15, 2005, and features a 273-room hotel, a 38,000 square foot casino, a fitness center and indoor swimming pool and a 37,000 square foot convention and special events center, which includes capacity for 17,000 square feet of divisible meeting room space.
Karachi -- The Chief Minister Sindh Syed Qaim Ali Shah has recommended the Federal Government that provinces share form divisible pool progressively be increased from existing 57.
PESHAWAR -- Senior Minister Khyber Pakhtunkhwa, Siraj-ul-Haq has said that due to unilateral variation in total federal divisible pool of resources the already budget starved province is facing a deficit of Rs.

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