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Spanish Stock Market Index

The state of many markets in the world is represented by stock exchanges, in which shows the versatility and value of different markets that exist in a country. To learn more about the Stock Market of different countries, there are some indexes, giving information on the status and changes occurring in the bag. One of the best known indexes in the world is the Ibex 35, which is the most important indicator of the bag in Spain. The word means Iberia Ibex index, which in a sense can be understood as the rate of Iberia. The Spanish Stock Market index is comprised of 35 companies listed high in Spain, hence it is named Ibex 35. The Ibex is an index that is weighted by the share price, which means that not all companies that are part of Ibex have the same relevance in the index. The way the Ibex performs the calculation is very simple, since it performs a mathematical operation which points to perform the operation are capitalized stock, ie number of shares price and then apply an adjustment coefficient, with the idea that exceptional when performing certain operations by members of the Ibex.

With this in mind companies with higher market capitalization, just as they will have more weight in the Ibex, and the changes that occur in the actions of the most influential companies, ie the ups and downs, have higher incidence in the Ibex. Thus when the big companies that belong to the Ibex are down, the influence on the index is very worrying. Therefore to know generally the state of Ibex should maintain a review of the first six components of the Ibex. The utility that shows the Ibex, is that from this index shows the evolution of the Spanish stock market in a given period also serves to study how it can lead to the Spanish stock market in the future by a study on stock performance of companies. The configuration of the Ibex 14 was January of 1992, but the realization of valuations are present since 1989, due to an assumption of which was made later. The way he works the Ibex as given its composition is very simple, and the entry or exit of the securities that comprise the Spanish stock market index should be checked every certain period, using specific criteria that the determined by a technical advisory committee, which will determine who deserves a place in the index or who must leave the Ibex for their actions and not allow you to be part of this index group. So every six months the change is made, ie dial January 1 and July 1 each year.



This post first appeared on Touch 360, please read the originial post: here

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Spanish Stock Market Index

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