Question
The benchmark indices NIFTY 50 and SENSEX follow which
methodology for calculating the weightage of constituent stocks?Solution
Both NIFTY 50 (managed by NSE Indices) and SENSEX (managed by BSE) use a free-float market capitalization–weighted methodology for index calculation. • Free-float market capitalization = Share price × Number of shares available for public trading (excluding promoter holdings, government holdings, ESOPs, etc.). • This ensures that only shares actually available for trading influence the index weight, making the indices more reflective of the market. • Stocks with larger free-float market capitalization carry higher weightage in the index.
In a normal distribution, what percentage of observations lie within one standard deviation of the mean?
As per the guidelines of the Basel Committee for Banking Supervision (BCBS), credit losses on stage 1 assets will be categorised as _______ provisions a...
What new regulatory framework did SEBI introduce to redefine market capitalization computation for listed companies?
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1)SEBI is the regulatory body for capit...
According to the Union Budget 2023-24, consider the following statements regarding Cooperation:Â
1. New co-operatives that commenc...
The company reported:
• Purchase of Fixed Assets = ₹4,00,000
• Sale of Machinery = ₹1,50,000 (Book Value ₹1,20,000)
• P...
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Under the Simplified Turnover Method, what percentage of the projected annual turnover is typically used to calculate the working capital requirement?
Under RBI norms, a borrower is considered wilful defaulter if:
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