Stock Index
It is a way of measuring the performance of a group of stocks e.g. Nifty 50 tracks 50 companies listed in the stock exchange. If a stock index goes down, it means the weighted average price of the stocks in the index goes down.
Fall in the Share Market
A fall in the Share Market is recorded when the market capitalization of the exchange falls rapidly due to excessive selling. This is called a bear market.
Surge in the Share Market
Consider the exact opposite situation. That is called a bull run.
What is Market Capitalisation?
It is the value of the company being traded on the stock exchange. It is calculated by multiplying the
price of a share by total number of shares offered.
If a company has 100 shares, each valued at Rs. 5 – its market capitalization is Rs. 500.
It is a way of measuring the performance of a group of stocks e.g. Nifty 50 tracks 50 companies listed in the stock exchange. If a stock index goes down, it means the weighted average price of the stocks in the index goes down.
Fall in the Share Market
A fall in the Share Market is recorded when the market capitalization of the exchange falls rapidly due to excessive selling. This is called a bear market.
Surge in the Share Market
Consider the exact opposite situation. That is called a bull run.
What is Market Capitalisation?
It is the value of the company being traded on the stock exchange. It is calculated by multiplying the
price of a share by total number of shares offered.
If a company has 100 shares, each valued at Rs. 5 – its market capitalization is Rs. 500.
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