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)