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Stock Exchange Index or SEI
Stock Exchange Index is a measure of relative changes in prices of stocks from one duration to another index. Nairobi Stock Exchange twenty (20) - share Index or twenty (20) companies like Daily origin Stanchart Index - From twenty-five(25) most active companies in a specified period or weekly origin Computation of price index.
Uses of Stock Exchange Index
1. To gauge price or wealth progress in the stock market
2. in the market portfolio, to assess overall returns
3. To assess performance of specific portfolio using SEI like a benchmark.
4. May be utilized to predict future stock prices
5. Assist in examining and recognizing the factors such underlie the price movements.
analysing ratios
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