How does SENSEX works?
Everybody knows about
Sensex, but only a few knows how it works. The BSE SENSEX (Bombay Stock Exchange Sensitive Index), free-float market
capitalization-weighted stock market index of a few companies listed by the
Sensex. Sensex is just a sensitive index where if a companies performance or
value increases, its value will also be gradually increased. For this, first
the company should be registered in the stock exchange board. For the
registration, the company should follow certain rules and should also achieve
certain percentage of the shares issued
by them should be in the hands of public. The company should also have some
years of experience in the market.
After being
registered the company is provided with points based on their performance. Now
the floated shares in the market are purchased by big companies. If there is a
demand for their share in the market, their point grows. But if the demand
becomes low, then their points fall. The shares can be traded by anyone in the
market. Like this many companies get registered. The stock exchange board adds
up all the points of the registered companies, and gives the sensex points.
Hope the above information is useful.Any comments,suggestions or queries is most appreciated. You can leave your comments below. Please take 5 seconds to share this post with your friends and families.
4 comments:
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