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Explain key indicator of securities market? |
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Answer» 1. Market Capitalization Ratio: The market capitalization ratio is defined as market capitalization of stocks divided by GDP. It is used as a measure of stock market size. 2. Turnover: Turnover for a share is computed by multiplying the traded quantity with the price at which the trade takes place. Similarly, to compute the turnover of the companies listed at the Exchange we aggregate the traded value of all the companies traded on the Exchange. 3. Turnover Ratio: The turnover ratio is defined as the total value of shares traded on a country’s stock Exchange for a particular period divided by market capitalization at the end of the period. It is used as a measure of trading activity or liquidity in the stock markets. Turnover Ratio = Turnover at Exchange / Market Capitalization at Exchange |
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