Otcei index, Financial Management

OTCEI-COMPOSITE INDEX

The OTCEI index is a pure price index. The sum of the prices of all shares as of June, 1993 is in the denominator. The current prices are in the numerator. New scrips are added to both the numerator and denominator. Adjustments for rights and bonus issues are also made. There is no element of market capitalization in the OTCEI index.

This is not intended for portfolio managers and traders. It is intended to reflect the mood (bullish or bearish) accurately for small investors. This index is similar to TOPIX in Japan.

The OTCEI carried out several simulations to study the variations in the index. A weighted index system was also simulated, before selecting the basis. With only 41 companies listed, and with more than 40 percent market capitalization accounted by three companies [Renewable Energy System, Maxwell Apparel, and Biochem Synergy], a weighting system at this stage would not achieve much. Hence, they opted for pure price index.

Posted Date: 9/10/2012 6:46:08 AM | Location : United States







Related Discussions:- Otcei index, Assignment Help, Ask Question on Otcei index, Get Answer, Expert's Help, Otcei index Discussions

Write discussion on Otcei index
Your posts are moderated
Related Questions
Assembling the Divestiture Team: Divestment of a business requires a team of functional experts under the direction of an experienced project manager. The first and foremost ac

applicability of an operating cycle in vegetable growing business

These are bonds which are offered within the euro market and several other markets simultaneously. Unlike Eurobonds, global bonds can be issued in the same curren

Interest rate caps as well as collars are available on the over the counter (OTC) market or may be devised using market based interest rate options. They may be utilize to hedge cu

Question- Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 lakh.

Nature of Working Capital: Working Capital Management is concerned with the problems that arise in attempting to organize the Current Assets, the inter-relationship and Curren

a) Critical Path: A, B, E and F. Project completed in 11 weeks. Subtract one mark for each error made. Maximum marks can only be awarded if the candidate explicitly indicat

A Ltd sells goods at Rs.10.P.U. Its variable cost Rs.7.P.U and fixed cost amount to Rs.1,70,000 it finances all its assets by equity funds. It pays 40% tax on its income. Z Ltd is

Features of Capital Budgeting Decisions 1.       Existence of potentially large anticipated profits. 2.       Involves a comparatively high degree of risk 3.       Exist

Traditional treatmentof financial management Traditional treatment was found to have a lacuna to the extent that focus was on long-term financing. Its natural implication was t