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Technology Stocks : Ascend Communications (ASND)
ASND 200.28-1.0%Dec 3 3:59 PM EST
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To: gbh who wrote (48334)6/8/1998 8:38:00 PM
From: Lockhart  Read Replies (2) of 61433
 
The DOW is price weighted which means that the
index is simply an average of current prices
(adjusted for splits through a divisor) and
movement is influenced by the differential prices
of the components.

The S&P 500 is value weighted meaning the influence of the company on the index varies depending on its relative market cap in the index.

Not sure how this determines what proportion of shares of ASND must be added to index funds. It may just be equal to the dollar amount removed with DEC. Any clarification would be welcome.
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