1. Choice of base year on which to base the price changes
2. The selection of representative securities/firms
3. Combining the securities/firms to construct the index eg use of geometric mean
4. Use of suitable weight to be attached to the securities depending on their relative importance.
5. The weights/number of firms in a sector is kept constant over a reasonably long period.
Kavungya answered the question on March 12, 2019 at 05:38
-
Give the factors Affecting Share Prices.
(Solved)
Give the factors Affecting Share Prices.
Date posted:
March 12, 2019
.
Answers (1)
-
State the factors to Consider when Buying Shares of a Company.
(Solved)
State the factors to Consider when Buying Shares of a Company.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the trading mechanism at NSE.
(Solved)
Describe the trading mechanism at NSE.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe 3 stock market terminologies.
(Solved)
Describe 3 stock market terminologies.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the 3 types of jobbers.
(Solved)
Describe the 3 types of jobbers.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe a speculator.
(Solved)
Describe a speculator.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe a broker.
(Solved)
Describe a broker.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the advantages of Investing In Shares.
(Solved)
Give the advantages of Investing In Shares.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the examples of financial intermediaries in Kenya.
(Solved)
Describe the examples of financial intermediaries in Kenya.
Date posted:
March 12, 2019
.
Answers (1)
-
Define financial intermediaries.
(Solved)
Define financial intermediaries.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the features of OTC Markets.
(Solved)
Give the features of OTC Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the types of Stock Markets.
(Solved)
Describe the types of Stock Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
State the roles of Secondary Markets in the Economy.
(Solved)
State the roles of Secondary Markets in the Economy.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the economic Advantages of Primary Markets.
(Solved)
Give the economic Advantages of Primary Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
Give examples of Financial Instruments in Money market.
(Solved)
Give examples of Financial Instruments in Money market.
Date posted:
March 12, 2019
.
Answers (1)
-
Give examples of Capital market financial institutions.
(Solved)
Give examples of Capital market financial institutions.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the Functions of Capital Markets.
(Solved)
Give the Functions of Capital Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
State the Functions of Financial Markets in the economy.
(Solved)
State the Functions of Financial Markets in the economy.
Date posted:
March 11, 2019
.
Answers (1)
-
Give the Reasons for Significant Growth in Venture Capital in the Developed Countries.
(Solved)
Give the Reasons for Significant Growth in Venture Capital in the Developed Countries.
Date posted:
March 11, 2019
.
Answers (1)
-
State the Advantages and disadvantages of Overdraft Finance.
(Solved)
State the Advantages and disadvantages of Overdraft Finance.
Date posted:
March 11, 2019
.
Answers (1)