Ramesh prepared share price index number identify and explain the concept​

Answers 1

Explanation:

Share price index is the measurement of change in average price of all shares in a company.It was creating for noting the share prices that is rise and fall in the price and index at some base points. If share price increment takes place index will show upward arrow and vice versa. And mostly it truly reflects the growth and fall of a market.

The index is calculated by adding the stock prices of the 30 companies and then dividing by the divisor.((divisor changes when there are stock splits or dividends or when a company is added or removed from the index.))

Well ,one more thing,devisor ensures that stock splits, special dividends, and buybacks do not significantly alter the index.

Hope its beneficial.

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