Security Analysis An Investment Management

Q-1Collect the newspapers of last 1 month feed the daily sensex set in to the excel sheet and you have to salt a substance(p) it with the help of Dow J one(a)s theory. Solution SENSEX An proponent of the 30 closely actively trade windd stocks on the Bombay Stock Exchange (BSE). The Sensex is considered the to the highest degree important benchmark index finger on the BSE, and it is the oldest stock index in India. Unlike some(prenominal) indices, it is non weighted for price or commercialise capitalization, precisely rather for free-float capitalization. This is similar to trade capitalization, save uses sh bes available for trade rather than the total shares outstanding. Thus, it excludes shares that have not been vested, among separates. Sensex is formally cognise as the Bombay Exchange Sensitive Index. DOW supposition Dow theory was formulated from a series of Wall pathway Journal editorials authored by Charles H. Dow, which reflected Dows beliefs on how the stock market behaved and how the market could be utilize to measure the health of the stage business environment. Dow believed that the stock market as a whole was a reliable measure of general business conditions within the parsimony and that by analyzing the overall market, one could accurately gauge those conditions and mark the direction of major market hacks and the likely direction of item-by-item stocks. The market discounts everything.

Dow theory uses trend analysis to determine which way the market is headed. Primary trends are major market trends. supplemental trends are corrections of the indigenous trend. Primary trends are make up of tether phases. For an! upward trend, these phases are: the accumulation phase, the universe participation phase and the wasted phase. For a downward trend, the three phases are: the distribution phase, the public participation phase and the dismay phase. Market indexes must patronise each other. In other words, a major retrogression from a bull or bear market cannot be signaled unless both indexes (generally the...If you want to draw a bead on a full essay, set up it on our website: OrderEssay.net

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