ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Shows trends in the market
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Provides weights to shares
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Show the volume of trade in market
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Shows transactions of shares
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Detailed explanation-1: -A stock market index is a statistical measure which shows changes taking place in the stock market. To create an index, a few similar kinds of stocks are chosen from amongst the securities already listed on the exchange and grouped together.
Detailed explanation-2: -In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance.
Detailed explanation-3: -A trend is the overall direction of a market or an asset’s price. In technical analysis, trends are identified by trendlines or price action that highlight when the price is making higher swing highs and higher swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend.
Detailed explanation-4: -The Trend Intensity Index (TTI) indicator can help determine the strength of the current market trend. The TII range is between 0 and 100, where typically a value above 50 is a bullish trend, and a value below 50 is a bearish trend.
Detailed explanation-5: -An index is a group or basket of securities, derivatives, or other financial instruments that represents and measures the performance of a specific market, asset class, market sector, or investment strategy.