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Example (provided by rediff.com reader Munish Oberoi):Source: http://www.rediff.com/money/2008/feb/21bspec.htm Suppose the Index consists of only 2 stocks: Stock A and Stock B. Suppose company A has 1,000 shares in total, of which 200 are held by the promoters, so that only 800 shares are available for trading to the general public. These 800 shares are the so-called 'free-floating' shares. Similarly, company B has 2,000 shares in total, of which 1,000 are held by the promoters and the rest 1,000 are free-floating. Now suppose the current market price of stock A is Rs 120. Thus, the 'total' market capitalisation of company A is Rs 120,000 (1,000 x 120), but its free-float market capitalisation is Rs 96,000 (800 x 120). Similarly, suppose the current market price of stock B is Rs 200. The total market capitalisation of company B will thus be Rs 400,000 (2,000 x 200), but its free-float market cap is only Rs 200,000 (1,000 x 200). So as of today the market capitalisation of the index (i.e. stocks A and B) is Rs 520,000 (Rs 120,000 + Rs 400,000); while the free-float market capitalisation of the index is Rs 296,000. (Rs 96,000 + Rs 200,000). The year 1978-79 is considered the base year of the index with a value set to 100. What this means is that suppose at that time the market capitalisation of the stocks that comprised the index then was, say, 60,000 (remember at that time there may have been some other stocks in the index, not A and B, but that does not matter), then we assume that an index market cap of 60,000 is equal to an index-value of 100. Thus the value of the index today is = 296,000 x 100/60,000 = 493.33 This is how the Sensex is calculated. The factor 100/60000 is called index divisor.
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Can you provide an example of how to substitute keywords in a sentence?
Substituting keywords in a sentence involves replacing certain words with synonyms or related terms. For example, in the sentence "The cat chased the mouse," you could substitute "cat" with "feline" and "mouse" with "rodent" to create "The feline chased the rodent."
What is opportunity cost and can you provide an example of how it applies in decision-making?
Opportunity cost is the value of the next best alternative that is forgone when a decision is made. For example, if you choose to spend money on a vacation, the opportunity cost is the potential investment or savings you could have made with that money instead.
What is opportunity cost and can you provide an example to illustrate its concept?
Opportunity cost is the value of the next best alternative that is foregone when a decision is made. For example, if you choose to go to a concert instead of studying for an exam, the opportunity cost is the potential higher grade you could have achieved if you had studied instead.
Opportunities of IT in supply chain management?
IT could help in intergrate the overall processes of supply chain management. they could provide the inventory management system (order replinshment and safety stock calculation), automate the process of dealing with suppliers & customers whether it is a pull or push strategy and create forecasting models IT could develop the overall MRP(Material requirement plan) in addition to creating the interface that suppliers and customers would use and helping in e-trading and e-business.
Who developed it?
Could you please clarify what "it" refers to? This will help me provide a more accurate answer.
Do you need a comma after out?
Could you provide an example? Syntax would help.
What could be causing the error between the two values in this calculation?
The error between the two values in the calculation could be caused by inaccuracies in measurement, rounding errors, or mistakes in the calculation process.
What information can a construction loan calculator provide?
A construction loan calculator could provide a rough or maybe even exact estimate on the cost for a construction project given that one has all required components for calculation.
What logical fallacy does the example contain?
I'm happy to help! Could you please provide me with the example you're referring to?
Who is is an example of which onyms?
Could you please provide more details or clarify your question about "onyms"?
How much years per bullet?
The phrase "years per bullet" typically refers to a calculation of time served for each count or charge in a legal context, often in relation to sentencing. For example, if an individual receives a 10-year sentence for multiple charges, you could divide the total years by the number of charges to find an average. The specific calculation can vary significantly based on the nature of the offenses and the legal system in question. If you have a specific example in mind, please provide more details for a more precise answer.
Can you provide an example of a question that includes the keyword "signature" in it?
An example of a question that includes the keyword "signature" could be: "Why is it important to have a signature on legal documents?"
Could food colouring added to the substance affect the density calculation of the substance?
no it could not
How could one get savings account interest rate calculation for free?
You could get the calculation of your interest rate in your savings account online. They have calculators online that can help you find your interest rate.
A function performs a calculation that result in?
when you put average our range what is your answer?' its a ONE answer so which is a "single value." - Kristin is a Moron. U WILL NEVER KNOW
How the sensex point will increase and decrease?
The Sensex likes to climb uphill like those nursery rhyme characters, Jack and Jill. And then, just like them, it comes tumbling down (causing many heartbroken Jack and Jills to lose their wallets in the bargain).Have you ever wondered what makes the Sensex move and who decides how it should move?Undoubtedly, you have heard your share of eerie stories. Like the one about the mysterious unseen hand that moves the market. Or how the market has a mind of its own.In reality, though, 30 stocks decide what the Sensex does.In Sensex? What's that?, we explained what the Sensex is made of. Now, let's see what makes it move.As you know, the Sensex comprises of 30 stocks. When the prices of these stocks increase, the Sensex goes up. When the prices decrease, the Sensex falls.It sounds simple but it still does not answer the 'how' question.Well, there is the market cap methodEach of the 30 stocks in the Sensex has a weight attached to it. This weight depends on the market capitalisation of the stock.Market capitalisation refers to the number of shares of a company multiplied by its market value (the price of each share). For instance, if a company has 10 million shares whose value is Rs 30 per share on November 1, 2004, it will have a market cap of Rs 300 million on November 1, 2004.If the market cap of the 30 Sensex stocks is Rs 3,00,000 crore and the market cap of ITC (which is one of the 30 shares that make up the Sensex) is Rs 20,000 crore, then ITC's weight in the Sensex is 6.66 percent.The rise or fall in the price of ITC's shares will impact the Sensex to that extent.This is referred to as the full market capitalisation methodology.Now, let's check free-float weightageThe Sensex shifted to the free-float weightage method on September 1, 2003.Here, a company's entire lot of shares are not taken into account (which means we are not looking at the entire market capitalisation). Only the shares readily available for trading are considered.In every company, a certain amount of shares are not available for trading on the stock exchange. These shares could be held by the government or the promoters of the company. Under the free-float weightage method, they are not taken into account.How does the stock exchange arrive at this weightage?In this case, the market cap is multiplied by the free float factor (which is the proportion of a company's shares that can be readily bought and sold).The Sensex's free float market cap at close of business on December 3 was Rs 3,66,124 crore.Unlike the Sensex, the 50 stocks in Nifty -- the index of the National Stock Exchange -- is based on the market cap method and not the free-float method.Sounds scary, does it not? Just 30 stocks can send the Sensex soaring or plummeting. What makes the difference is the fact that these are the most actively traded stocks in the market.In fact, they account for half the BSE's market capitalisation. They also represent 13 sectors of the economy and are leaders in their respective industries. Which means they are fairly representative of the stock market.
Can you provide an example of a question that includes the keyword "dialogue" in it?
An example of a question that includes the keyword "dialogue" could be: "How does the use of dialogue contribute to the development of the characters in the novel?"
