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 it is calculated based on the share prices of its components. Increasing the number of shares outstanding by 10% would not directly affect the index value, as long as the share prices remained the same. Therefore, the value of the index would not change.

If Each Company That Made Up the Dow Jones Industrial