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Ike Kapetan
Joined: 17 Jun 2006 Posts: 3036 Location: Europe
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Posted: Mon Feb 12, 2018 2:36 pm Post subject: Stock Exchange |
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quora - How is a stock market index calculated?
* The value of the S&P 500 constantly changes based on the movement of its 500 stocks that it contains.
* The index is computed with a 'Weighted Average Market Capitalization'.
* The Market Capitalization is based on multiplying the stock price and the shares outstanding.
* Each stocks weight is calculated by dividing the market capitalization of each stock by the total market capitalization of S&P 500.
* Then similar the weights and market capitalization is multiplied and all 500 stocks are added together to create the S&P Index Price |
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Ike Kapetan
Joined: 17 Jun 2006 Posts: 3036 Location: Europe
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