Importance of stock market index slideshare

<p>A stock index or stock market index is a measurement of the value of a section of the stock market.</p>

The investor can use the indices to allocate the funds rationally among the stocks.

Volume - Volume is nothing but quantity.

That means that the companies are actually selling power of the company to the. Market. A stock market index.

At the end of 200, the index reaches 2,75.47. Other important indexes used in the Shanghai Stock Exchanges include the SSE 50. Indices are an important part of the stock market and therefore of investments. The stock exchange provides a platform for trading in financial products. The companies (listing their shares), brokers, traders, and investors must register with. But how much do we actually understand about the stock exchange and its a closer look at the meaning, functioning and the importance of the Stock Exchange. Such prices of shares of various companies can be tracked via the index we. The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with index futures on June 12, 2000. The futures contracts on the NSE are.

Compare key indexes, including Nasdaq Composite, Nasdaq-100, Dow Jones Industrial & more.

Economic Barometer: A stock. Here are four important functions of financial markets. STOCK MARKET INDICES:USEFULNESS Stock market indices are the barometer of the stock market. BSE SENSEX,NSE-50 etc are some of the market indices.Their usefulness: Indices help to recognize broad trends in the market. Technical analysts use these indices to predict the future market. Indices function as a status report on the general economy. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

Read this article to learn about the concept, features and role of stock exchange in the market.

THE IMPORTANCE OF STOCK MARKET INDEXES Although the stock market is much more dynamic than the indexes suggest, along with the fact that there are different ways to calculate the indexes, causing calculation bias, the stock market indexes are useful in a number of ways to stock investors.

Important terms in stock market and in stock trading Close - The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day. Bid - The Buying price is called as Bid price. Offer - The selling price is called offer price. 15. With some 7000 companies listed on BSE, it is not possible to look at the prices of every stock to find out whether the market movement is upward or downward. The indices give a broad outline of the market movement and represent the market. Some of the stock market indices are: Sensex, NIFTY, BSE-200, CRISIL-500. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market.

A stock market index is a measurement of the value of a section of the stock market. Its price is compounded from the prices of selected stocks. This means that a stock index is basically a benchmark for the economy, or for some sectors of the economy. Stock market is an important part of the economy of the country. Growth and fall in economy is some how reflected by the levels of the stock market. Rising stock market is the sign of a developing industrial sector and a growing economy of the country. Stock market also provide funds to business houses. Some Other Types of Market Indexes.