Question

From a copy of The Wall Street Journal, find the divisor that is currently being used...

From a copy of The Wall Street Journal, find the divisor that is currently being used in calculating the DJIA  

Homework Answers

Answer #1

Dow Divisor or simply the "Divisor" is a numerical value that is used to calculate the level of the Dow Jones Industrial Average (DJIA). DJIA is calculated by adding all the stock prices of its 30 components and dividing the sum by the divisor.

The latest available Dow divisor is 0.147 as at the end of in september 2019. It means that for every $1 change in price of any given stock within the index (DJIA) , there is an average movement of 6.781-point movement in the market.

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