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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: ajtj99 who wrote (29753)2/13/2002 2:18:32 AM
From: Psycho-Social  Respond to of 99280
 
DJIA Split Drops the Average:
I don't believe it works that way. When a split occurs, the multiplier (called the divisor) is adjusted by an appropriate amount. The weighting of the split company does, however, drop in half, while the other 29 stocks get a slightly greater weight to offset it.