Specialized stock indexes, Financial Management

Assignment Help:

Specialized Stock Indexes

The most regularly quoted market indices are those that include the stocks of the largest listed companies on a nation's largest stock exchange. Examples include the BSE 30, the CNX Nifty 50, and others. However, because of the concentration of a relatively few very large stocks, such indices can give a misleading picture of market trends. Therefore, there is need for more specialized indices for tracking the performance of specific sectors of the market - for instance, there are national indices for technological companies, banks or companies with having high brand recognition or value, or small companies indices.

Sector Indices can be classified on various parameters: they can be classified on the basis of industry, on the basis of capitalization (Large Cap Index/Mid Cap Index/ Small Cap Index), on the basis of ownership (BSE PSU Index), or composition of index published in newspapers like Economic Times, Businessline, etc

 


Related Discussions:- Specialized stock indexes

Money market mutual fund, Money Market Mutual Fund Even as the Mutual F...

Money Market Mutual Fund Even as the Mutual Funds show a promise of becoming a major instrument of household savings, another concept which is being talked about and waiting to

Explain financial ratio, What is a financial ratio? A financial ratio i...

What is a financial ratio? A financial ratio is a number that denotes the value of one financial variable that is relative to another.  Put much more simply, a financial ratio

Yield curve shift, The relative change in the yield for each treasury...

The relative change in the yield for each treasury maturity is known as a shift in the yield curve. When the change in the yield for all the maturities is same, t

Role of special purpose vehicle, The financial institutions tha...

The financial institutions that originate the loans sell a pool of cashflow-producing assets to a specially created third party that is called a

Accept-reject rule, Accept-Reject Rule: The decision rule is to accept ...

Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard.  If not, reject it.  While ranking the projects, projec

Application of shareholder value maximization framework, Application of Sha...

Application of Shareholder Value Maximization Framework   Factors affecting Shareholder's Value are: Capital Market Conditions Profitability à Includes factors li

Explain the bird in the hand theory of cash dividends, Explain the bird in ...

Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory states that dividends received now are better as compared to a promise of future divi

Describe modigliani and miller approach of capital structure, Q. Describe M...

Q. Describe Modigliani and Miller Approach of Capital Structure? Ans. Modigliani as well Miller Approach: - The Modigliani-Miller approach is alike to the net operating income

Definition of capital budgeting, Q. Definition of Capital Budgeting? Ca...

Q. Definition of Capital Budgeting? Capital Budgeting is the procedure of making decisions for investment in long-term assets. It is a method of deciding whether or not to inve

Define supply curve for a good is totally inelastic, Suppose the supply cur...

Suppose the supply curve for a good is totally inelastic.  If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result?  Explain.

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