New Stock Investors Must Understand These Terms

 

The Composite Stock Price Index is the only important component that must be used in monitoring share price movements in the country. Investors usually use parameters in the Composite Stock Price Index to read price developments and make a reference to the portfolio. This makes perfect sense because the Composite Stock Price Index itself collects all share prices listed on the national stock exchange. The investors themselves will read and monitor price movements through the Composite Stock Price Index as a reference for their investment. Usually, the Composite Stock Price Index parameter is also used as a medium for trends on the trading floor. On the other hand, you may go to stock market website if you wish to know more about Como investir na bolsa de valores .

How do you read the Composite Stock Price Index?

The portfolio performance of a stock can be seen from the Composite Stock Price Index, bearing in mind that when the stock prices in the Composite Stock Price Index move higher than the increase in the stock price of the portfolio, investors can draw conclusions that the stock portfolio is deteriorating. Vice versa.

Individual Stock Price Index

This Individual Index is an index that describes the price movement of each share of an issuer listed on the national stock exchange. With this type of Individual Stock Price Index, investors can monitor which stocks are most active or frequently traded in the securities market.

Price movements on the individual stock index are calculated based on the base price of the shares. This calculation also uses the same principles as the Composite Stock Price Index.

Sectoral Stock Indexes

Called the Sectoral Index, because the national stock exchange classifies stock indexes based on 9 sectors, namely agriculture, basic industry, consumer goods, infrastructure, property, development, finance, trade, and services.

In this index, there are a collection of several types of issuers according to their respective sectors. Specifically for issuers in the various basic industry sectors and the consumption materials industry, the national stock exchange classifies in the manufacturing industry index.

The sectoral index is important to see the trend of shares traded in these sectors, for example when stocks in the financial sector improve, it can be predicted that the condition of other sectors will also improve.

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