Consider the following statements:
1. Sensex is based on 50 of the most important stocks available on the Bomb

Question

Consider the following statements:
1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE)
2. For calculating the Sensex, all the Sensex stocks are assigned proportional weightage.
3. New York Stock Exchange is the oldest stock exchange in the world.
Which of the statements is/are correct?

Accepted Answer

The correct option is A because only the second statement contains accurate information, while the others are incorrect.

Statement 1 is incorrect because the Sensex is based on 30 of the largest and most actively traded stocks on the Bombay Stock Exchange, not 50. The index that tracks 50 stocks is the Nifty 50, which belongs to the National Stock Exchange.

Statement 2 is correct because the Sensex is calculated using a free float market capitalization methodology. In this system, each component stock is assigned a weightage proportional to its market value available for public trading.

Statement 3 is incorrect because the Amsterdam Stock Exchange, established in 1602 by the Dutch East India Company, is considered the oldest stock exchange in the world. The New York Stock Exchange was founded much later in 1792.

Answer

2 only

Answer

1 and 3

Answer

2 and 3

Answer

None

Explanation

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