Global Indices Knowledge Check

What is GIFT NIFTY and how does it function?

• GIFT NIFTY is a cryptocurrency trading platform.

• GIFT NIFTY is a stock exchange for international companies.

• GIFT NIFTY is a government initiative for financial literacy.

• GIFT NIFTY is a trading platform for derivatives based on the Nifty 50 index, operating in GIFT City, India.

What are the main features of the DOW index?

• It primarily tracks international markets.

• It is a market capitalization-weighted index.

• It includes 50 small U.S. companies.

• Main features of the DOW index include being a price-weighted index, consisting of 30 large U.S. companies, and serving as an economic indicator.

How does the NASDAQ differ from the DOW?

• The NASDAQ focuses on tech stocks and is market cap-weighted, while the DOW includes 30 large companies and is price-weighted.

• The NASDAQ includes 30 large companies and is market cap-weighted.

• The DOW focuses on tech stocks and is market cap-weighted.

• The NASDAQ and DOW both track the same companies and are price-weighted.

What does the S&P 500 represent in the stock market?

• The S&P 500 is a measure of international stock markets.

• The S&P 500 includes only technology companies.

• The S&P 500 tracks the performance of 100 small U.S. companies.

• The S&P 500 represents the stock performance of 500 large U.S. companies.

What is the significance of the NIKKEI index?

• The NIKKEI index is a measure of U.S. unemployment rates.

• The NIKKEI index measures global oil prices.

• The NIKKEI index tracks the performance of European technology stocks.

• The NIKKEI index is significant as it reflects the performance of Japan's economy and stock market.

How is the HANG SENG index calculated?

• The HANG SENG index uses a fixed-weight methodology for its calculation.

• The HANG SENG index is determined by the total number of shares traded in the market.

• The HANG SENG index is calculated based on the average price of its constituent stocks.

• The HANG SENG index is calculated using a free-float market capitalization weighted methodology.

What are the key components of the DAX index?

• The DAX index includes all companies listed on the Frankfurt Stock Exchange.

• The DAX index is composed of 20 small-cap companies from Germany.

• The DAX index tracks the performance of international companies outside of Germany.

• The key components of the DAX index are the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange.

What does the FTSE 100 index measure?

• The FTSE 100 index measures the performance of the top 50 companies in Europe.

• The FTSE 100 index measures the performance of the 100 largest companies on the London Stock Exchange.

• The FTSE 100 index measures the performance of the 100 largest companies in the United States.

• The FTSE 100 index tracks the performance of all companies listed on the London Stock Exchange.

How does the CAC 40 index reflect the French economy?

• The CAC 40 index measures the performance of the agricultural sector.

• The CAC 40 index reflects the French economy by representing the performance of the largest companies, indicating economic trends and investor sentiment.

• The CAC 40 index only includes technology companies.

• The CAC 40 index is solely based on government bonds.

What factors influence the movement of the DOW index?

• Weather patterns

• Celebrity endorsements

• Economic indicators, corporate earnings, interest rates, geopolitical events, market sentiment.

• Social media trends