Podcast
Questions and Answers
What triggers index maintenance?
What triggers index maintenance?
- Economic indicators
- Stock issuance
- Market volatility
- Corporate actions (correct)
Who takes the final decision on the inclusion or removal of a security from an index?
Who takes the final decision on the inclusion or removal of a security from an index?
- Stock Brokers
- Index Committee (correct)
- Investors' Association
- Market Regulator
What is the purpose of index revision?
What is the purpose of index revision?
- To predict stock prices
- To reduce market volatility
- To capture the most vibrant lot of securities in the market (correct)
- To regulate stock issuance
Which of the following is NOT a major equity index in India?
Which of the following is NOT a major equity index in India?
Why were indices traditionally used?
Why were indices traditionally used?
How are stocks chosen for inclusion in an index?
How are stocks chosen for inclusion in an index?
What is the primary responsibility of specialized agencies like Asia Index Pvt Ltd and NSE Indices Limited?
What is the primary responsibility of specialized agencies like Asia Index Pvt Ltd and NSE Indices Limited?
In index management, what does revision of an index primarily involve?
In index management, what does revision of an index primarily involve?
How does diversification impact risk reduction in an index?
How does diversification impact risk reduction in an index?
What is the purpose of adjusting an index for corporate actions such as bonus issues or mergers?
What is the purpose of adjusting an index for corporate actions such as bonus issues or mergers?
What is the trade-off involved in creating a good index?
What is the trade-off involved in creating a good index?
What is the impact of going beyond 100 stocks in an index on risk reduction, according to the text?
What is the impact of going beyond 100 stocks in an index on risk reduction, according to the text?
What is the main purpose of financial indices?
What is the main purpose of financial indices?
Why is percentage change more important than the actual numeric value when discussing indices?
Why is percentage change more important than the actual numeric value when discussing indices?
How is a stock index typically used as a benchmark by portfolio managers?
How is a stock index typically used as a benchmark by portfolio managers?
What is one major application of stock indices in financial markets?
What is one major application of stock indices in financial markets?
Why are broad indices expected to capture the overall behavior of the equity market?
Why are broad indices expected to capture the overall behavior of the equity market?
What methodology classifies each stock in a market capitalization weighted index?
What methodology classifies each stock in a market capitalization weighted index?
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