📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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.  

    Practice Next
    More Taxation Questions

    Relevant for Exams:

    ask-question