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To: tnsaf who wrote (7366)11/26/1998 3:52:00 AM
From: Q.  Respond to of 10921
 
Jason, re. the SOX, no, if you look at the numbers in the columns in the phlx.com URL I gave, you will find that the weight is exactly proportional to the share price. The weight of a stock = its share price divided by the sum of the share prices of all stocks in the index.

There is a divisor indicated at the bottom; if INTC had a stock split, the only effect on the computation of the SOX is that the divisor would adjust. This divisor is applied to the sum of all the stock prices of the individual stocks. The weight of INTC would drop almost in half if they split the stock in half. The only reason it wouldn't drop exactly in half is that the divisor would change by a few percent.