How does Share Index is calculated/ What is its relation to Volume, value and number of shares traded?

Answer 1

Instead of buying vegetables separately at individual rates, you sometimes ask to give a portion of each vegetable as a single lot worth certain amount e.g. Ginger, Chili, Coriander worth Rs.10).

The different vegetables can be compared to individual stocks in index and the Amount is the index. When you buy index....You actually buy each stock in the index in proportionate quantities.

If,

x = No of shares of a security in index

Y = Current Market Capitalisation of the index

C = issued capital for the security

Then

X = Amount * C / Y ......... Where

Y = Summation ( Last Traded Price (Previous Close if not traded) * Number of issued Shares )

Hope this makes sense.

Answer 2

NZX Equity Indices are calculated using the Paasche formula which measures the change in market capitalisation of a share basket or, for gross indices, the change in market capitalisation plus any dividends payable to shareholders.

All NZX Equity Indices are calculated continuously throughout each trading session. End of day values are calculated using closing prices from a random close during a five minute window at the end of the day.
Capital index calculation formula:

Capital index calculation formula
Gross index calculation formula:

Gross index calculation formula
t = trading day
Last sale price

The last sale price used for index calculation is determined by the most recent price-setting trade for each security. To be price-setting, a transaction must be matched on-market (i.e. negotiated deals and/or reported marriages are not price-setting) and be above minimum size thresholds. This is the same price-setting criteria as used by NZX to determine if a trade is eligible to set the first, high, low or last price of the trading day. If there is no trading in a security on a given trading day, the previous day's closing price will be used for index calculation.

Dividends

For the NZX Gross Indices, the dividend figure used is the net dividend, exclusive of imputation credits, but without deduction of any withholding tax. This methodology has been in place since 1 October 2005. Prior to that date, the NZX Gross Indices used the full dividend amount, including imputation credits.

Answer 3

Go to Nasdaq.com and it will tell you how the NDX is calculated.

That is how BSE and Nifty is calculated.

The volume is the cumulative volume of all the shares in the index.

It is really complex cause it has various ratios and weights that it might use.

KKP_Inv

Answer 4

The minimum nuber of shares which you would be able to commerce is one share (nicely -- you may commerce 0 shares in case you like). shares regularly commerce in a lot of one hundred shares. something under a hundred shares is named an "unusual lot." you will not get as stable a value procuring and promoting unusual a lot as you may procuring and promoting finished a lot.

Answer 5

A vary complex process
For details and help please write to
1.Mumbai stock exchange Mumbai
or
National stock exchange New Delhi