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What are objectives of composing indices?

Updated: 8/16/2019
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Wiki User

11y ago

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A Stock market index is an indicator that shows us the performance of the Stock Market as a whole.

For example The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index.

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15y ago
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Q: What are objectives of composing indices?
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