Otcei index, Financial Management

Assignment Help:

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.


Related Discussions:- Otcei index

The profitability and liquidity of the firm, Explain how the working capita...

Explain how the working capital management policies affect the profitability and liquidity of the firm?

Define deposit loan rate spread in the eurodollar, How does the deposit-loa...

How does the deposit-loan rate spread in the Eurodollar market compare with the deposit-loan rate spread in the domestic U.S. banking system?  Why? Answer: The deposit-loan sprea

Characteristics and effects of saps, CHARACTERISTICS AND EFFECTS OF SAPS ...

CHARACTERISTICS AND EFFECTS OF SAPS Although SAPs differ somewhat from country to country, they typically have the following features: Reduction in Trade Barriers SAP’s r

How do risk-averse investors compensate for risk, How do risk-averse invest...

How do risk-averse investors compensate for risk when they take on investment projects? Due to the risk aversion, people demand higher rates of return for taking on higher-risk p

Discuss the pros and cons of financing in unhedged, You have the following ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Comparative financial statement analysis, You are currently employed by DPT...

You are currently employed by DPT Holdings Ltd (DPT) one of the world's largest MNEs based in the United Kingdom. DPT is looking to enter into a new phase of global expansion activ

Benefits of issue of securities, Benefits of Issue of Securities Initial...

Benefits of Issue of Securities Initial Public Offering (IPO) of securities gives instant recognition and visibility to the firm, helps to attract and retain skilled personnel,

Show inter-corporate deposits, Q. Show Inter-Corporate Deposits? Inter-...

Q. Show Inter-Corporate Deposits? Inter-Corporate Deposits: Inter-corporate lending/borrowing or deposits (ICDs) is a popular short-term investment alternative for companies in

Define the term- profit, Define the term- profit The term "profit" can ...

Define the term- profit The term "profit" can be used in two senses. As an owner-oriented concept it refers to amount and share of national income that is paid to owners of bus

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd