Stock Market Index
The general movement of the stock market is usually measured by averages or indices consisting of groups of securities that are supposed to represent the entire stock market or its particular segments. Thus, Security Market Indices (or) Security Market Indicators provide a summary measure of the behavior of security prices and the stock market. The principal stock market indices used in India are the Bombay Stock Exchange Sensitive Index (BSE Sensex) and the S&P CNX Nifty known as the NSE Nifty (National Stock Exchange Fifty). Purpose of an Index The security market indices are indicators of different things and are useful for different purposes. The following are the important uses of a stock market index: Security market indices are the basic tools to help and analyze the movements of prices of various stocks listed on stock exchanges and are useful indicators of a country’s economic health. The return on the Continue reading