Sensex

CALCULATING THE SENSEX How to calculate BSE SENSEX? The Sensex has a very serious function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to luff whether the stocks are generally going up, or generally going down. To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the free-float grocery capitalisation method. This is a world wide accepted method as one of the best methods for calculating a stock grocery store index. Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is through to make the Sensex an accurate index and so that it represents the BSE stocks properly. To rightfully understand how the Sensex is calculated, you simply need to understand what the term free-float grocery store capitalization means. (As we said earlier, the Sensex is calculated on basis of the free-float merchandise capitalization method) But, before we understand what free-float market capitalization means, you first-class honours degree need to understand what market capitalization means. You probably intend that you have never heard of the term market capitalization before. You have!

When you are talking about mid-cap, small-cap and large-capitalisation stocks, you are talking about market capitalization! mart cap or market capitalization is simply the outlay of a company in terms of its shares! To cast off it in a simple way, if you were to buy all the shares of a accompaniment company, what is the amount you would have to pay? That amount is called the market capitalization! To calculate the market cap of a particular company, simply multiply the current share price by the number of shares issued by the company! Just to give you an idea, ONGC, has a market cap of Rs.170,705.21 Cr (when this article was written) Depending on the cherish of the market cap, the company will either be a... If you loss to get a full essay, order it on our website: Orderessay

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