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QUESTION 15 A composite value of traded stocks or secondary markets is classified as: a. Stock index. b. Primary index. c. St
QUESTION 17 A volatile stock can be pushed sharply higher by: O a. Buyer margin calls. b. A rise in maintenance margin requir
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Answer #1

Composite value of traded stock or secondary market is classified as:

Answer: Stock Market Index

Small explanation:

In simple words stock market index is a measurement which helps to identify or showcase the changes in stock market, some selected stocks are used to calculate composite value of traded stocks, chosen stocks underlying values are considered to calculate stock market index.

Generally weighted average method is used for calculation. Stocks are selected on various basis like size, market capitalization, industry etc from similar type of group. Any type of change in selected stock affects the stock market index. It is efficient tool to know changes in stock market or secondary market.

Note: I have answered for the first question, as more than one question is given. Please put other question in separate post.

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