Question

    The stock market indices NIFTY and SENSEX are calculated

    on the basis of which of the following?
    A Paid up Capital Correct Answer Incorrect Answer
    B Authorized Share Capital Correct Answer Incorrect Answer
    C Market Capitalization Correct Answer Incorrect Answer
    D Free-float Capitalization Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The NIFTY and SENSEX indices are calculated using a free-float market capitalization-weighted methodology, which means that the weight of each stock in the index is determined by its free-float market capitalization. Free-float shares are the shares that are available for public trading.

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