Limitations of middle asia stock exchange index, Finance Basics

Limitations of Middle Asia Stock Exchange Index

1. The twenty (20) company's sample whose share prices are utilized to calculate the index are not true representatives.

2. The base year of 1996 is also far in the past

3. New companies are not involved in the index yet other firms have been suspended or deregistered like KFB and ATH.

4. Dormant firms - Some of the twenty (20) firms utilized are dormant or have extremely small price changes.

5. Thinness of the market - small changes in the active shares tend to be considerably magnified in the index

6. The weights utilized and the technique of computation of index may not provide a truly representative index.

Posted Date: 2/1/2013 1:31:38 AM | Location : United States







Related Discussions:- Limitations of middle asia stock exchange index, Assignment Help, Ask Question on Limitations of middle asia stock exchange index, Get Answer, Expert's Help, Limitations of middle asia stock exchange index Discussions

Write discussion on Limitations of middle asia stock exchange index
Your posts are moderated
Related Questions
Advantage of Bill - Source of Finance Advantages of necessitating a Bill as a Source of Finance They are a faster means of raising finance whether drawer is credible.

Advantages of Investment in Shares 1. Income in form of dividends When you contain shares of a company then you become a part-owner of such company and hence you will be

Competitors and General Public - Measuring Business Performance Competitors These are interested in the company's presentation from the market share point of view and wi


Every time a listed company does a share buyback, investors and media alike would debate fiercely on the merits of such a scheme. There are investors who prefer buybacks to high

Similarities between Preference Share Capital and Debt Similarities between Preference Share Capital and Debt are as follows: a) Both have fixed returns. b) Both do not

Blue Chips and Going Short or Long on Share - Stock Market Blue Chips Are first class securities of firms that have sound share capital and are internationally

The financial data is of little value in its raw form. However, the same may be analyzed and be put in the form more meaningful to the recipients. This is normally done by using va

Financial Forecasting Financial forecasting refers to determination of the firm of financial requirements in advance. Financial forecasting is needs financial planning using b

What are the Advantages of Listing on Stock Exchange (i) Detailed information about company is available. (ii) Information increases activity of purchase and sale of the sec