ccarmen

QUOTE:

以下是引用cathytutu在2007-12-3 14:37:00的发言：

Maybe I can't agree on this.

Notes stated that price-weighted index tends to be baised downward as large growth companies may issue stock-split which downwards price-weighted index.

Also, after stock-split, stock prices decrease which leads to lower price-weighted index.

Welcome for any comment.

[em01]

Sorry, I cann't agree with you too.

The Shwester notes fail to include a concept called 'divisor'.

To get the price-weighted index, sum up the prices of the stocks in the index and then divide that number by a divisor. Remember, this divisor is not simply the number of different stocks included in the index and should be changded to maintain the continuity of the index bafore and after a stock split.  How can you emagine DJI changes a lot just because a stock split of a single stock?

This content is in the Reading Material 56, not the notes.

hehe, so i chose the unchanged answer.