IBM is a member of the Dow Jones Industrial Average, the 30-stock index that aims to be representative of the US economy. At $$141.16 right now, IBM is down $8.06, or 5.4%, since Monday’s market close. That is taking 53.84 points off the Dow. How’d we compute that? The Dow is peculiar in that it is a price-weighted index, meaning stocks with the highest share prices have the most influence on the index’s movements. According to The Wall Street Journal, the current Dow divisor is 0.149677, meaning a 1-point move in any Dow stock moves the Dow by 6.6810 points …read more
Source: Business Insider
