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How does the Dow divisor work?

Updated: 9/22/2023
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Q: How does the Dow divisor work?
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What is the divisor for the Dow Jones?

.122


What is the current divisor for the Dow Jones?

.122


How do you figure the Dow Jones Industrial Average?

The stock values of all 30 companies are added up and divided by 0.12283402, the new divisor.


Is the divisor always less than the remainder?

because the divisor wont work when you multiply it??


How The Dow Jones Industrial Average Is Calculated?

The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, INDP, or informally the Dow Jones or The Dow) is one of several stock market indices, created by nineteenth-century Wall Street Journaleditor and Dow Jones & Company co-founder Charles Dow. It is an index that shows how certain stocks have traded. Dow compiled the index to gauge the performance of the industrial sector of the American stock market. It is the second-oldest U.S. market index, after the Dow Jones Transportation Average, which Dow also created. The average is computed from the stock prices of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historical-many of the 30 modern components have little to do with traditional heavy industry. The average is price-weighted. To compensate for the effects of stock splits and other adjustments, it is currently a scaled average, not the actual average of the prices of its component stocks-the sum of the component prices is divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, to generate the value of the index. Since the divisor is currently less than one, the value of the index is higher than the sum of the component prices. To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor, the DJIA divisor. The divisor is adjusted in case of splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. The initial divisor was the number of component companies, so that the DJIA was at first a simple arithmetic average; the present divisor, after many adjustments, is less than one (meaning the index is actually larger than the sum of the prices of the components). That is: : where p are the prices of the component stocks and d is the Dow Divisor. Events like stock splits or changes in the list of the companies composing the index alter the sum of the component prices. In these cases, in order to avoid discontinuity in the index, the Dow divisor is updated so that the quotations right before and after the event coincide: :The current value of the DJIA Divisor is 0.1255527090. This value is regularly published in the Wall Street Journal and is available on-line at the Chicago Board of Trade's web site.


Who was influenced by Frank Lloyd Wright?

For one, Alden Dow, a Michigan architect from the Dow Chemical family. Some of his work can be toured in Midland, Michigan.


What is the number that divided the dividend?

a divisor


How does Dow Jones work concerning the stock market?

cuase maybe he wants to


Does your strategy work for divisions where the dividend or divisor is a whole number or a mixed number?

Yes, it does.


What nicknames does Greg Dow go by?

Greg Dow goes by CBJamocha Yellow, Gtd Rea, and DOW chicka dow dow.


A divisor of a number?

a divisor of a number


What is the reciprocal of the divisor?

It is 1/divisor.