Stock Market Indices

Price Weighted Index

1
Value Weighted Index
2

Market Capitlaization

Value Weighted Index

 Sum of stocks price/number of stocks in index adjusted for splits

current total marekt value of index stocks/base year total market value of index stocks *base year index value

MPS * Number of Shares

(Overall Market Cap/Base)*index

Question 1

Compaines Day 1 Day2 Day3

A 12 10 14
B 23 22 46
C 52 55 52

Price -Index Value 29 29 ?

New Divisor New Divisor

? ?

Question 2

Compaines Day 1 Day2 Day3

A 20 25 30
B 40 45 52*
C 10 15 18
D 60 55 65

Price-Index Value 32.5 ? ?

New Divisor
?

Question 3
Compaines Day 1 Day2 Day3
A 30 36* 20
B 10 15 20*
C 18 24 28

Price-Index Value 19.33333333 ? ?

New Divisor New Divisor
? ?

Question 5

Compaines Day 1 Day2 Day3

A 70 76 82
B 16* 50 56
C 42 45 62*
D 18 22 28

Price-Index Value 36.5 ? ?

New Divisor New Divisor

? ?
Day4 Day5
13 12
47 45
25 26

? ? stock B has reverse split (one for two) on day 3

Stock C has stock split (two for one) on day 4

Day4 Day5
26 38
27 32
37* 76
60 72
stock B has stock split (two for one) on day 4

? ? Stock C has reverse stock split (one for two) on day 5

New Divisor
?
Day4 Day5
26 32
62 70
22 29

? ? stock A has stock split (two for one) on day 3

Stock B has reverse stock split (one for three) on day 4

Day4 Day5
86 74
65 57
36 41
24 32
stock B has reverse stock split (one for three) on day 2
? ?
Stock C has stock split (two for one) on day 4
r two) on day 3

one) on day 4

one) on day 4

one for two) on day 5

Question No. 1

A # of Shares Market Cap A B

Day 1 12 500 ? 23
Day2 10 500 ? 22
Day3 14 500 ? 46
Day4 13 500 ? 47
Day5 12 500 ? 45

Overall Market Cap Value Weighted Index

Day 1
Day2
Day3
Day4
Day5

Question No. 2

A # of Shares Market Cap A B

Day 1 15 100 ? 20
Day2 18 100 ? 25*
Day3 22 100 ? 52
Day4 25 100 ? 56
Day5 32 100 ? 60

Days Overall Market Cap Value-weighted Index

Day 1 ? ?
Day2 ? ?
Day3 ? ? VWI
Day4 ? ?
Day5 ? ?
? ?

Question No. 3
 A # of Shares Market Cap A B
Day 1 20 500 ? 32
Day2 25 500 ? 38
Day3 18* 500 ? 42*
Day4 38 250 ? 24
Day5 42 250 ? 28

Overall Mrk Cap Value-weighted index

D1   ? ?
D2    ? ?
D3     ? ?
D4    ? ?
D5     ? ?
 # of Shares Market Cap B C # of Shares Market Cap C
350 ? 52 250 ?
350 ? 55 250 ?
175 ? 52 250 ?
175 ? 25 500 ?
175 ? 26 500 ?

# of Shares Market Cap B C # of Shares Market Cap C

400 ? 40 300 ?
400 ? 45 300 ?
200 ? 56 300 ?
200 ? 60* 300 ?
200 ? 34 600 ?

stock B has reverse stock split (one for two) on day 3

stock C has stock split (two for one) on day 5

Use benchmark of 1000

(Overall Market Capitalization/Base)*1000

# of Shares Market Cap B C # of Shares Market Cap C
200 ? 52 100 ?
200 ? 56 100 ?
200 ? 58 100 ?
400 ? 50 100 ?
400 ? 46 100 ?

stock A has reverse stock split (one for two) on day 4

stock B has stock split (two for one) on day 3

Use benchmark of 100

Overall Market Cap
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Overall Market Cap

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Overall Market Cap
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