Accountancy Forum

what does index mean?
how does it make Stock exchange go up and down

www.kse.com.pk

Ice Blue

For example
The KSE 100 Index is a benchmark used to compare prices over a period of time, companies with the highest market capitalization are selected. However, to ensure full market representation, the company with the highest market capitalization from each sector is also included.

islamabad_@hotmail.co.uk

Stocks in publicly traded companies are bought and sold at a stock market also known as a stock exchange. This is the most common way of buying and selling shares. If investor interest is positive then stock market index goes UP or if investor interest is negative then stock index goes DOWN

islamabad_@hotmail.co.uk

the stock market index is a benchmark against which performances of stock markets are analysed. There are many different ways in which stock market indexes can be computed, for e.g, market-value weighted, price weighted.

I cant understand...pls .anyone would like to add some thing....

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<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zee_cma</i>
<br />I cant understand...pls .anyone would like to add some thing....

Smile ! GOD loves you.....
www.thezee.com
mail@thezee.com
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

What don't you understand?

<b>INDEX</b>

Index of any kind i.e poverty, education etc is an average mathod.

Indexes used in stock exchanges are usually used to compare the prices of stocks of different companies such as

Company A +10
Company B -20
Company C -
Company D -
Company E +2

Here index shows

3 Companies' stock price is increased, one's decreased and two's remained same.

<b>KSE INDEX</b>

There are different names given to indexes. A single stock exchange may have more then one indexes.

If we take the above example and assume that it is the only index of, say Rawlapindi Stock Exchange then we can name it

Rawalpindi Stock Exchange 5 Index - OR - RSE-5

Same is the case with KSE-100 which stands for Karachi Stock Exchange 100 Index (100 Companies). Islamabad Stock Exchange 10 Or ISE-10 is another example.

Hope it helps
SHAHID

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thx for index but wht does it mean taht e.g ise closed at say 1000 points how these pts go up down

Index points or technically 'Index Average' is a mathematical way of quantifying an exchange's performance. As mentioned earlier, there are many ways of doing so.

Index points fluctuate in response to the exchange's performance.

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by madeeha</i>
<br />what does index mean?
how does it make Stock exchange go up and down
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Thanks for interesting in stock exchange and it will be so demanding in future.