arlie

Please provide the details about the stock index and its purpose?

Hi all! This seems way too difficult for me, let me try to explain Stock Index and topics related with it.
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ilyastrab
"Stock index is essentially a barometer of the movements in the stock or capital market in a particular country. Instead of considering the movement of all the shares traded in the market, a proxy of the market is created with the help of Sensex For example, BSE-Sensex is one of the widely referred stock index pertaining to Indian stock market. It comprises of 30 frequently traded blue-chip stocks representing different sectors. Another popular index is Nifty that comprises of 50 stocks. Stock indices are also constituted for a specific sectors (steel/ automobiles/ IT services/ banking and finance to quote a few). Stock indices are usually based on free float market capitalization of constituent stocks. Source: http://in.docsity.com/en-docs/Organization_and_Function_of_Equity_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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