Easier and faster sale of shares. Any company whose shares can be bought and sold more easily and quickly in the stock market has more liquidity. The index of 50 more active companies shows the changes in the general level of stock prices of 50 companies whose shares are more liquid than other companies.
All kinds of other indices of the stock market
Index of 30 large companies: As the name of the index of 30 large companies indicates, this index shows the general level of stock prices of 30 large companies. 30 big companies whose market value is higher compared to other companies. The market value of a company is obtained by multiplying the daily price of the company’s shares by the number of shares of that company.
Industry index: Industrial companies are companies that operate in various industries such as automotive, petrochemical, basic metals, telecommunications, construction, etc. The industry index shows the general level of stock prices of companies active in the industry sector. The performance of each of these industries is examined under a separate index. For example, cars, medicine, basic metals and chemical products.
Financial intermediation index: This index shows the performance of financial intermediation companies whose activities are in the financial field, such as holdings, investments and leasing.
Other indices are also calculated in the stock market, which may not be of much use to general stock market investors, and we have not explained them in this article.
An important point about the index
It is true that the index shows the performance and status of the stock market, but the positive or negative index does not necessarily mean that the entire stock market is positive or negative. Rather, the index shows us the general situation of the stock market. In many cases, a few big companies that have a lot of weight (capital and market value), while the situation of many other companies is different, may make the total index positive or negative by their positive or negative. In these cases, equal price index or total equal weight index can show us the general situation of the market in a better way, because in the equal weight index, the weight of all listed companies is considered equal, and other large companies cannot influence the index due to their large capital
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ
This post is written by Mahdi_kohsoltani