August 2, 2010
why is the all ords higher than the asx 200 ?
By Planet Wealth
and what does it signify.
Topics: stock market | 2 Comments »
2 Responses to “why is the all ords higher than the asx 200 ?”
Comments
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August 2nd, 2010 at 12:45 pm
a poor mans market
August 2nd, 2010 at 12:45 pm
The actual number doesn’t mean anything!!!
The All Ords is based on the share prices of 500 major companies listed on the Australian Stock Exchange. These prices are ‘weighted’ according to the market capitalisation of those companies. This means that a company with 5 per cent of the total value of stock listed in the index would constitute 5 per cent of the index. The All Ords, then, is calculated by adding the ‘weighted’ share price (in cents) of each company in the index, then dividing this sum by the total number of those companies
The All Ords, like other indexes in other stock markets, is regarded as an indicator of the general ‘health’ of the market. The actual number doesn’t mean anything, except as it relates to previous index values. Market analysts look at trends – is the index rising or falling