RSM230H1 Study Guide - Final Guide: Dividend Discount Model, Standard Deviation, Treasury Stock
Document Summary
Index a number that measures a number of stock prices so that a percentage change in this index can be calculated over time. They serve as the underlying assets for options, futures, and etfs. Average used for the same purpose, but is determined by summing up the number of prices and diving by the number of items (equally weighted). S&p/tsx composite index determined by the total market capitalization of a portfolio of the most actively traded canadian stocks. The stocks are reviewed every quarter, and stocks can be replaced. A base value of 1000 was set in. Midcap index contains 60 stocks that rank below s&p/tsx 60 in market cap, while the smallcap index contains the remaining stocks. Dow jones industrial average (djia) most widely quoted measure of nyse stock performance, but only includes 30 stocks. It"s a price-weighted average, which reflects the highest quality blue chip stocks in the us.
