The value-weighted indexes have an adjustment divisor which attempts to reflect varied-size companies entering and exiting, new share issue, and corporate share repurchases, all of which impacts the total market capitalization of the companies in the index.

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Value-weighted indexes, also known as market capitalization-weighted indexes, use an adjustment divisor to maintain consistency in the index's value when there are changes such as different-sized companies entering or exiting the index, issuance of new shares, or share repurchases by companies. These adjustments ensure that the index accurately reflects the overall market capitalization of its components over time.

The Value-Weighted Indexes Have an Adjustment Divisor Which Attempts to Reflect