Price-Weighted vs. Market-Cap-Weighted: How Stock Indices Work
Learn how price-weighted and market-cap-weighted indices work, how the Dow Divisor functions, worked math examples, and the key distortions of each method.
Learn how price-weighted and market-cap-weighted indices work, how the Dow Divisor functions, worked math examples, and the key distortions of each method.
Alphabet (GOOGL) replaces Verizon (VZ) in the Dow Jones Industrial Average on June 29, 2026. Here’s what the price-weighted swap means for the index.