Money and Banking system
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Hi Guys
Welcome back to Veera's Channel
Free Training classes for Finance Jobs
as promised we are back with Money and Banking system
If having money makes anyone rich, why RBI is not printing enough money to make our country rich, why we are not one of those rich countries, have you ever given a thought about this.
So come lets understand this through our Chapter Money and Banking system
Before proceeding further if you haven't seen our previous videos where we RBI, SEBI, Public Sector Company, Private Company, Primary Market and Secondary Market, I highly recommend you to watch them which are very important for getting finance jobs
With no further delay lets start
Our Next topic is going to be, Monetory policy, where we discuss about how RBI uses the tools called CRR and SLR to control the currency currculation in India
If you are following the News last week there was an RBI meet where RBI declared new rates
if you want to understand the importance of this news and its impact on economy you should not miss our next video on Monetoary policy,
Hello Guys,
Welcome back to Veera's Channel
Free Training for Finance Jobs
Today we are going to discuss about the doubt asked by our friend Sudheer in comments session of our previous classe on stock markets
That is nothing but how sensex is calculated? So we have already discussed a lot about sensex and nifty in our previous classes if you haven't watched them yet, I highly recommend you to watch them before you watch this class
Now the calculation part what ever we are going to discuss in this class, is applicable for any stock index calculation like nifty or you can take any stock index in the world. so by listening to this class you will get to know how stock indexes are calculated in the entire world.
With no further delay lets start
To understand the index calculation
First we need to know what is a share or Stock
Share is nothing but the part of ownership in a company, I hope you remember our previous class on how share prices increase or decrease.
So we already know the share will have a price, we have to pay the price to own the share or buy the share
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Now we know as what is a share
Lets understand another term called Market Capitalisation
Market capitlisation is nothing but the number what we get after multiplying number of shares with current market price of each share
Don't see it in a complicated way
Lets understand it simply
if you have 2 eggs and each egg price currently in Market is 4 rupees, we could say that you are having 8 rupess worth of eggs
In the similar way the total number of shares in the market into price of each share will give the total value of the company in the market that is nothing but the Market capitalisation of that company
After knowing what is Market capitalisation
Now just we will refresh how to calculate a percentage
Our every day discussions are build on percentage if you say like you like something 50% it means you like it only half. so every body can understand if we express anything in percentage
Suppose if we got 30 marks for a full marks of 60 we got 50% marks as 30 is exactly half of 60
So to get this 50 percentage value we are multiplying 30/60*100
It means if you are getting 30 marks for 60 it is equal to 50 Marks for 100
here we wanted to compare our marks with 100 marks, so multplying it with 100
If we wanted to compare our marks with 1000 marks, we will multiply it with 1000
It means if you are getting 30 marks for 60 it is equal to 500 Marks for 1000
------------
Now if you remember our previous class on Stock Markets, Sensex is build using how may stocks, Sensex is build using 30 stocks
Market capitalisation today means market capitalisation of 30 companies shares in sensex as of today divided by market capitalisation of sensex on base day
base day is nothing but the first day of calculation of sensex
on first day of sensex calculation the market capitalisation on base day and the market capitalisation on today will be same as both are one and the same day
And this value they wanted to compare with 1000 so they have multiplied it with 1000
So sensex value is 1000 on the first day it was build
for example let us assume market captilization of sensex on first day is 5 crores and market capitaliszation of sensex on base day will 5 crores so 5 crores divided by 5 crores into 1000 will give you 1000 which is nothing but sensex first day value
Now on 2nd day sensex market capitlization has increased to 5crores 10 lakhs as per our formula 5 crores 10 lakhs divided by 5 crores into 1000 will give you the value of sensex as 1020
In this way every day the sensex value changes based on the value of the 30 stocks taken into consideration for calculating sensex
Right now the sensex value is around 39650, so hope you understood the calculation part
------------------------
Hi Guys
Welcome back to Veera's Channel
Free Training classes for Finance Jobs
as promised we are back with Money and Banking system
If having money makes anyone rich, why RBI is not printing enough money to make our country rich, why we are not one of those rich countries, have you ever given a thought about this.
So come lets understand this through our Chapter Money and Banking system
Before proceeding further if you haven't seen our previous videos where we RBI, SEBI, Public Sector Company, Private Company, Primary Market and Secondary Market, I highly recommend you to watch them which are very important for getting finance jobs
With no further delay lets start
Our Next topic is going to be, Monetory policy, where we discuss about how RBI uses the tools called CRR and SLR to control the currency currculation in India
If you are following the News last week there was an RBI meet where RBI declared new rates
if you want to understand the importance of this news and its impact on economy you should not miss our next video on Monetoary policy,
Hello Guys,
Welcome back to Veera's Channel
Free Training for Finance Jobs
Today we are going to discuss about the doubt asked by our friend Sudheer in comments session of our previous classe on stock markets
That is nothing but how sensex is calculated? So we have already discussed a lot about sensex and nifty in our previous classes if you haven't watched them yet, I highly recommend you to watch them before you watch this class
Now the calculation part what ever we are going to discuss in this class, is applicable for any stock index calculation like nifty or you can take any stock index in the world. so by listening to this class you will get to know how stock indexes are calculated in the entire world.
With no further delay lets start
To understand the index calculation
First we need to know what is a share or Stock
Share is nothing but the part of ownership in a company, I hope you remember our previous class on how share prices increase or decrease.
So we already know the share will have a price, we have to pay the price to own the share or buy the share
--------------
Now we know as what is a share
Lets understand another term called Market Capitalisation
Market capitlisation is nothing but the number what we get after multiplying number of shares with current market price of each share
Don't see it in a complicated way
Lets understand it simply
if you have 2 eggs and each egg price currently in Market is 4 rupees, we could say that you are having 8 rupess worth of eggs
In the similar way the total number of shares in the market into price of each share will give the total value of the company in the market that is nothing but the Market capitalisation of that company
After knowing what is Market capitalisation
Now just we will refresh how to calculate a percentage
Our every day discussions are build on percentage if you say like you like something 50% it means you like it only half. so every body can understand if we express anything in percentage
Suppose if we got 30 marks for a full marks of 60 we got 50% marks as 30 is exactly half of 60
So to get this 50 percentage value we are multiplying 30/60*100
It means if you are getting 30 marks for 60 it is equal to 50 Marks for 100
here we wanted to compare our marks with 100 marks, so multplying it with 100
If we wanted to compare our marks with 1000 marks, we will multiply it with 1000
It means if you are getting 30 marks for 60 it is equal to 500 Marks for 1000
------------
Now if you remember our previous class on Stock Markets, Sensex is build using how may stocks, Sensex is build using 30 stocks
Market capitalisation today means market capitalisation of 30 companies shares in sensex as of today divided by market capitalisation of sensex on base day
base day is nothing but the first day of calculation of sensex
on first day of sensex calculation the market capitalisation on base day and the market capitalisation on today will be same as both are one and the same day
And this value they wanted to compare with 1000 so they have multiplied it with 1000
So sensex value is 1000 on the first day it was build
for example let us assume market captilization of sensex on first day is 5 crores and market capitaliszation of sensex on base day will 5 crores so 5 crores divided by 5 crores into 1000 will give you 1000 which is nothing but sensex first day value
Now on 2nd day sensex market capitlization has increased to 5crores 10 lakhs as per our formula 5 crores 10 lakhs divided by 5 crores into 1000 will give you the value of sensex as 1020
In this way every day the sensex value changes based on the value of the 30 stocks taken into consideration for calculating sensex
Right now the sensex value is around 39650, so hope you understood the calculation part
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