Stock indexes are generally considered as the indicators of industrial growth and economic progress. They are suggestive of the growth pattern of the economy. The investors use them as a benchmark to evaluate the performance of their portfolios. They form the basis for the formation of patterns used by the technicians and chartists. Economists and Statisticians use stock indexes to study the trend of growth pattern in the economy. They are used by Mutual Funds for creating Index Funds.Index Derivatives like index Futures are used as tools for hedging.
Construction of Stock Index
The process of indexing involves the comparison of currently computed averages with some base values.
Generally an index is computed as :
Indec Value =Current Average Value/Base Average Value * 100
The index so calculated is compared with that of a previous day for arriving at a conclusion about the market condition since its inception as well as previous day.
PUBLICATIONS
M.G. Uty. (Core X-Sem IV-CBCSS B.Com) Capital Market November 2010
M.G.Uty. (Core XII-Sem IV-CBCSS B.Com) Financial Services - November 2010
M.G.Uty (Sem III CBCSS B.Com) Information Technology for Business (Computer Option -I) - July 2010
M.G.Uty (Common Core III-Sem-III-CBCSS B.Com) E-Commerce & General Informatics - June 2010
M.G.Uty (Common Core II-CBCSS B.Com-Sem II) Business Communication & MIS (January 2010)
Publications-Books
M.G. Uty (B.Com Annual Scheme-IIIrd Year) - Capital Market & Financial Services June 2008
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