About this document
Calculation Methodology 2 by wigoso6216 is a document available to read on EtoBox.
The document outlines five methods for constructing stock market indices: Price-Weighted, Market Capitalization-Weighted, Equal-Weighted, Fundamental-Weighted, and Free-Float Market Cap. Each method has its own formula, advantages, and disadvantages, affecting how companies are represented based on share price, market cap, or fundamental performance metrics. Real-life examples of indices using these methods include the Dow Jones Industrial Average, S&P 500, and Nifty 50.
- Author
- wigoso6216
- Language
- EN