NISM Series 8 (NISM VIII): Equity Derivatives Certification Exam Notes

Page 14 Of 102

Go to:

  • 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 Equity Derivatives

Copyright 2025 - MODELEXAM MODELEXAM®