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

The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011. The company pays out 30 percent of its earnings as dividends per share (DPS), and the

As the Chief Financial Officer for the wholly Australian owned, Australian Stock Exchange listed company, Toy Show Ltd., an importer and manufacturer of a range of quality children

if u were the professor wht your opinion about vincent mind stage

Broker - Stock Market 1. A dealer on the market who that sells and buys securities on behalf of the public investors. 2. And he is an agent of investors 3. He is t

"Managerial leadership considers that the focus of school leaders ought to be on functions, tasks and behaviours and if these functions are carried out competently the work of othe

risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory

BAC is considering an issue of preferred stock.  The dividends are 8.12% of the $25 par value. a.    If the present price is $26.25 per share, what is the return on the preferre

according to given specialization take down an industry and investigate its managerial hierarchy to describe each of one of the managerial work level functioning

1. Each project has RM 10,000, and the cost of capital for each project is 12%. The projects' expected cash flows are as follows: Expected Net Cash Flows YEAR