NISM Series XIII Common Derivatives Certification Exam Notes

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  • Free-Float Market Cap: Uses only tradeable shares for index weight calculation.
  • Index Calculation: Weighted average of constituent stocks’ prices or market caps.
  • Independent Third Party: Indices computed by neutral entities to avoid bias.
  • Professional Maintenance: Ensures indices are updated and reliable.
  • Liquidity Importance: High liquidity reduces impact cost, aiding efficient trading.

NISM Common Derivatives

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