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 ?
In Fichte's view, it is equally important to realize that the infinite divisibility he is referring to--that is, the infinite divisibility extension is all about--has nothing to do with an infinite series of actual divisions.
In this paper, we prove results concerning the structure of k-ary divisibility relations and use that to obtain formulae for the number of integers m less than or equal to n which satisfy [(m, n).sub.k] = 1.
Chowla, On the divisibility of the class number of quadratic fields, Pacific J.
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Thus, we suggest that the lack of divisibility of treatment effects in the case of brain cancer resulted in Weatherly and Terrell's failure to obtain the reverse magnitude effect for nonmonetary outcomes.
Key words: Modular Arithmetic, Congruence, Divisibility, b-adic expension.
Divisibility of land and "territorial compromise" are at the heart of impossible U.S.
The lack of divisibility led her to abort this path and started to use a guess-and-check procedure.
Issues Related to the Divisibility of Municipal Pension Plans
Keywords: Patrimony by appropriation, limitation of the liability for the professional obligations, securities, entrepreneur, patrimony divisibility, alienation of the patrimony by appropriation
4 About the three-zone electron structure and the divisibility of charge
For the developer, this enables them to advance construction and delivery of initial sales, facilitates an increase divisibility of site progress and also enables them, in certain instances, top anticipate in the upside beyond a certain price threshold.