Thursday, March 19, 2015

An index that is the definition of stock index stock price index. Is to show indicators of a refere


An index that is the definition of stock index stock price index. Is to show indicators of a reference share price movements compiled by the stock exchange or financial services institutions. Stock price fluctuations due to impermanence, investors will inevitably face market price risk. For specific price changes of a particular stock, the investor is easy to understand, but for a variety of changes in the stock price, and to understand one by one, it is not easy, but also troublesome. In order to adapt to this situation and need some financial services nkba organizations to use their business knowledge and advantages familiar with the market, the preparation of the stock price index, publicly, nkba as indicators of changes in market prices. Accordingly investors can examine the effect of their investments, and to predict stock market trends. Meanwhile, the press, the company owner and even political leaders, also as a reference index, to observe, predict the social, political, economic developments. This stock index, which is indicated that the price of the average share price movements. Preparation of stock index, usually a certain period as the basis, the stock price as the 100 base period compared with the stock price and the base price for subsequent nkba periods, calculate the percentage rose except, that is, the period of the stock index. According to the index of investor and down, you can determine movements in stock prices. And investors in order to be able to reflect trends in the stock market in real time, all the stocks in the stock price changes are almost at the same instant announcement stock price index. Stock index is calculated, taking into account three factors: First, the sample, pulling out a small number nkba of constituent nkba stocks in a representative number of stocks; the second is weighted according to the weighted average unit price or gross, or weighted average; nkba the third is the calculation nkba procedures, calculate the arithmetic mean, geometric mean, or both price and total value. Because of listed stocks a wide range of computing the average price of all listed stocks or work index is arduous and complicated, nkba so people often choose several wealthy representative sample stocks from listed stocks and calculates the average nkba of these samples stock price or index. To represent the entire market and the general trend of the stock price ups and downs. Often considered nkba when calculating the average share price or index the following four points: (1) sample stock must be typical, ordinary sex, do this, select the corresponding sample considering the distribution of its industry, market influence, stock levels, an appropriate number of other factors. (2) the calculation nkba method should have a high degree of adaptability to changing the stock market to make corresponding adjustments or amendments to make the stock index or the average have better sensitivity. (3) have a scientific basis and calculation methods. nkba Calculated on the basis of the caliber must be unified, are generally nkba calculated on the basis of the closing price, but with the increase in frequency is calculated, some hourly price even shorter time prices. (4) The base period should be better balanced and representative. Second, the calculation method of calculating the index stock index, stock index and stock prices tend to averages calculated nkba separately. By definition, the average share price that the stock index. However, the actual effect of the stock market both in terms of the average share price is a reflection of the general level of multiple stock price movements usually represent the arithmetic mean. By comparing the average number of people in different nkba periods of the stock, you can recognize nkba a variety of changes in the level of stock prices. The stock share price index reflects changes in different periods of relative nkba indicators, that is, the average share price of the first period as a percentage nkba of the average share price during the other benchmarks. nkba Through the stock index, one can understand the rise or fall of the stock share price than the base period percentage rate calculation nkba period. The stock index is a relative index, and therefore a longer nkba period, the stock index can more accurately measure price movements nkba than the average share price. 1. The calculation of the average share price reflects the average stock price of a certain point in the absolute level of listed stock prices, which can be divided into simple arithmetic average of the share price, the average share price correction, the weighted average stock price categories. People of different points in the share price by comparing the average, we can see changes and trends in stock prices. (1) the simple arithmetic average of the share price is the simple arithmetic average of the sample stock shares nkba daily closing price divided by the number of samples obtained, nkba namely: simple arithmetic average of the share price = (P1 + P2 + P3 + ... + Pn) / n the world's first an average stock price -? The Dow Jones average stock price in the October 1, 1928 is calculated using the simple arithmetic nkba average of. It is assumed that from a sample of the stock market as A, B, C, D of four, the closing price on a trading day were 10 yuan, 16 yuan, 24 yuan and 30 yuan, calculated nkba the average market price. The above number into the equation, that is, too: the stock Mean = (P1 + P2 + P3 + P4) / n = (10 + 16 + 24 + 30) / 4 = 20 (million) the simple arithmetic average stock price, although the calculation relatively simple, but it has two drawbacks: First, It does not consider the number of samples in a variety of stock weights, and thus can not distinguish nkba between the different effects of different samples of the importance of the average stock price of the stock. Second, when the stock split occurred sample stock bonus issue, capital, etc., the average share price will have faults and loss of continuity, so compare before and after the occurrence of difficult time series. For example, the above-mentioned D stock happen to a stock split into three shares, the share price is bound down from 30 yuan to 10 yuan, then the average is not according to the above calculated 20 yuan, but the (10 + 16 + 24 + 10) / 4 = 15 ( Yuan). That is, due to changes in technology division D shares, resulting in the average share price fell from 20 yuan to 15 yuan (which has not yet take into account other factors that affect stock price movements), is clearly not in line with the average stock price index as a reflection nkba of changes in requirements. (2) the average share price of correcting the average number of shares, there are two: First divisor Amendment Act, also known as channel-type correction method. This is the American way? Jones stock average calculation method in 1928 to create nkba a. The core of the method is to find a constant divisor to correct because of a stock split, capital increase, issuance of bonus shares and other factors cause changes in the stock price averages, the average number of shares in order to maintain continuity and comparability. Specific approach is new old stock price divided by the average number nkba of total shares, to obtain a new divisor, and then to calculate the total amount of the new share price divided by the divisor, which mediated the average correction draw shares. Namely: the average number of new divisor = new total shares after the stock price movement / old stock Mean corrected = reporting period the total stock / new divisor divisor in the previous example is 4, the new divisor should be adjusted: new divisor = (10 + 16 + 24 + 10) / 20 = 3, the new divisor is substituted into the following formula, then: average stock price correction = (10 + 16 + 24 + 10) / 3 = 20 (element) as when no segmentation and calculation of average derived, stock levels and stock split will not change. nkba Second, the share price correction method. Share price correction method is to stock splits nkba and other changes in stock prices after the reduction of share price movements before, so that the average share price will not change. "The New York Times" 500 stock average number of shares nkba is calculated on the establishment of the average share price correction nkba method. (3) Weighted average number of shares Weighted average number of shares is the stock averages were calculated based on the weighted average of the relative importance of the various nkba samples of the stock, its weights (Q) can be Traded, stock market capitalization, stock issuance, etc. . 2. The stock index stock index is calculated to reflect the different points of share price movements relative indicators. The reporting period is usually the stock price compared with the price of a given base period, multiplied by the ratio between the index and the value of the base period, namely the reporting period stock index. Stock index calculated in three ways: First, the relative method, the second is a comprehensive method, three weighted method. (1) Relative Relative Law Act, also known as average, is the first stock index calculated for each sample. Coupled with the arithmetic mean of the overall total demand. The formula is: = n stock index stock index of the samples and / n British "Economist" on the use of such common stock index calculation. (2) synthesis method synthesis method is to first base period and the reporting period the stock price samples are summed nkba and then compared to determine the stock index. Namely: stock index = reporting period the share price of and / base stock of and on behalf of the digital too: stock index = (8 + 12 + 14 + 18) / (5 + 8 + 10 + 15) = 52/38 = 136.8% that of the reporting period the share price rose by 36.8% compared to the base period . From the average method and comprehensive method to calculate the stock index, neither is taken into account by the various sampling stock issuance and trading volume are not the same, and the impact on the entire nkba stock market is not the same as other factors, therefore, calculated index also not accurate enough. In order to calculate the exact stock index, you need to join the right number, the number of transactions that may be right, nkba it may be a circulation. (3) the weighted stock index weighting is to be weighted nkba according to the relative importance of each of the sample stocks, the weights can be Traded, stock issuance amount. Divided in time, the weights can be a base number of options, the option can also be a report number. Traded to the base period (or circulation) for the right number of index called Raspail index; Traded to the reporting period (or circulation) for the right number of index called Paasche index. Raspail biased base period Traded Index (or circulation), while a Paasche index emphasis Traded (or circulation) reporting period. Currently most of the world stock indices are Paasche index.


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