"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_"
Add a comment
to see other 0 answers