how the sensex woks?tell me in brief?

Question

i want to know everything abt shares how its prices work?

Answer 1

Invest some money in shares and you will learn most of the things....Any way what you want to know can not be explained in this place...there are courses for this...contact a share broker in your area for this.

Answer 2

The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down.

SENSEX Calculation Methodology

SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.

The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.

Answer 3

Calculation of market indices has been an enigma for most investors. A web based calculator which aims at arming investors with a tool that lets them determine how, or rather which stocks have actually contributed to the day's happenings. And that too in quantitative terms.

You can find it here: http://www.marketsbull.com/stockmarket/announcements/DailyBseReplica.php

The tool is simple to use. Just select a company, indicate the price movement and click the 'then' button. The output boxes give the contribution of the stock to the change in the index.

Answer 4

Studying of Trading Techniques

They are three basic elements predict market i.e. Time, price, and volume.

Beginning traders tend to use mostly price-oriented techniques. The main point if trading is to buy at a low price and sell at a high price, so why concentrate on anything else? Those who have this philosophy, Therefore, will concentrate on techniques, which look at where price has been in order to predict where price is going.

its like a sea do u wat more information about shares u can contact me on [e-mail]

Answer 5

it is based all company movement either upside or down side on that sensex work

Answer 6

a simple explanation
http://www.indiahowto.com/why-stock-prices-change.html