In index calculations, the divisor is very often used in place of the adjustment factor. The functionsof the divisor and the adjustment factor are identical. Changes in the total index market capitalization resultingfrom changes in the index composition or from capital actions by index constituents must be offset in order to keep the index atthe same level before and after the operational adjustment.
Index level before the adjustment = Index level after the adjustment
However, the calculation of the divisor differs from that of the adjustment factor.
Divisor = market capitalization / index level
