DJIA divisor

The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the DJIA Divisor or Dow Divisor . The index divisor is updated periodically and adjusted to offset the effect of stock splits, bonus issues or any change in the component stocks included in the DJIA. This is done in order to keep the index value consistent. The current value of the Dow Divisor is 0.14602128057775 as of March 11, 2016. Every $1 change in price in a stock within the average, results in a 6.85 (1 ÷ 0.14602128057775) change in the DJIA. The present divisor, after many adjustments, is less than one (meaning the index is larger than the sum of the prices of the components). That is: