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 ?
Not divide and destroy!' Yes dear people, pull down brick by brick, false walls and temples built by those who want to separate and sever, and build instead Walls and Temples that Safeguard and Still the minds and hearts of men..!
then we say [phi](x, c) stably divides with parameters (w.p.) over A.
For unmarried couples, property division is not as clear because there is no law that sets out how to divide the property.
The Cold War Ideological Divide (the Soviet-East-American-West) Divide
The tracks get EUR6,000 a race now and we submitted a proposal that the tracks would contribute to a divide but that has not yet happened."
In this two-volume set, contributors from 50 different institutions and organizations in 13 countries examine the digital divide from interdisciplinary perspectives, focusing on policy and social issues.
This split formed two separate zygotes, which began to divide side by side.
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.
If a mother cell divides symmetrically, many scientists theorized that the offspring inherit cellular components equally ravaged by the experiences of previous generations.
The company reported that there are gender divides in Germany and Italy while South Korea is experiencing an age divide.
Based on that information, the court then divides the assets and decides the amount and duration of support, if any.
For this purpose, the volume draws lessons from the Indian experience--a country where information technology (IT) has made giant leaps, but which suffers from what have been described as multiple "digital divides".