Price weighted index adjusted stock split
How to Calculate Price Weighted Average for Stocks | The Finance Base
A number used in the denominator of the ratio between the total value of an index and the index divisor. The number, which typically has little mathematical rationale behind it, remains consistent and therefore enables comparability within the index over time.
CFA - Study: Unweighted, Price-weighted and Value-weighted index
How the value of the index is computed depends on the type of index under consideration. An index divisor is a crucial number in the calculation of the value of an index. It is the basis for comparability across time, and the starting point for adjustments that need to be made due to changes in the equity composition of the underlying companies in the index.
Some of the adjustments that may need to be made to the divisor include changes in the number of shares floated by a company, any rights offerings made to employees or management, and any share repurchases. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.
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Index Divisor
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Weighted Average Shares (On Comparative F/S, Adjusted For Stock Dividends, Splits & Issued)Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.