If each company that made up the Dow Jones Industrial Average increased the number of their shares outstanding by 10%, but the share prices did not change, the value of the index would:

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average is a price-weighted index, meaning that each stock's weight in the index is proportional to its price. Since the share prices did not change, the index value will not change even if the number of shares outstanding increases.

If Each Company That Made Up the Dow Jones Industrial