Click on the link below for the tutorial:
https://docs.google.com/file/d/0B9veYrYAicH_VU01Q0RDNTRLOU0/edit?usp=sharing
Ever heard of the term "stock" or "share"? It's actually the amount of ownership of a company.(usually a public limted company @ syarikat awam berhad). For example, a new company tenders 1 million shares for sale. If you buy 10 000 of them , then you own 1% of the company.
When a newly-established company opens its shares for sale for the very first time, the value of each share will normally be RM 1.00 or RM 0.50. This initial value is known as the par value. As time passes, the price of the share will increase or decrease, depending on how well the company is performing.
Take for instance Public Bank, which was listed as a public limited company in 1967. At that time, the price for each share was RM 0.50. Over the years, it expanded and became more successful and as of 4 Oct 2013, its share price has shot up to RM 17.90 (only a very small percentage of public limited companies in Malaysia have share prices exceeding RM 10).
A stock index is a composite index of a few selected stocks (of different corporations) and their respective weightages. It is frequently used by investors to determine how much profit they can get from their investments in a region. In Malaysia, the stock index is Bursa Malaysia (for Hong Kong, it's Hang Seng while for New York, it's Dow Jones).
As a matter of fact, the general formula employed to calculate the stock index is no different from what you'll be learning in this chapter:
However, the conditions are different. For example, the base year (for Bursa Malaysia) is 1964 and the value of the index keeps changing every second (it is not static). Take a look at the chart below:
1. http://www.klse.info/counters/chart/stock/1295 (retrieved 5 Oct 2013)
2. http://www.pbebank.com/corporate/ (retrieved 5 Oct 2013)
3. http://en.wikipedia.org/wiki/Stock_market_index (retrieved 5 Oct 2013)
4. www.bursamalaysia.com (retrieved 5 Oct 2013)
5. http://finance.yahoo.com/q/bc?s=%5EKLSE (retrieved 5 Oct 2013)
https://docs.google.com/file/d/0B9veYrYAicH_VU01Q0RDNTRLOU0/edit?usp=sharing
Ever heard of the term "stock" or "share"? It's actually the amount of ownership of a company.(usually a public limted company @ syarikat awam berhad). For example, a new company tenders 1 million shares for sale. If you buy 10 000 of them , then you own 1% of the company.
When a newly-established company opens its shares for sale for the very first time, the value of each share will normally be RM 1.00 or RM 0.50. This initial value is known as the par value. As time passes, the price of the share will increase or decrease, depending on how well the company is performing.
Take for instance Public Bank, which was listed as a public limited company in 1967. At that time, the price for each share was RM 0.50. Over the years, it expanded and became more successful and as of 4 Oct 2013, its share price has shot up to RM 17.90 (only a very small percentage of public limited companies in Malaysia have share prices exceeding RM 10).
 |
| The share price (in RM) of Public Bank for 4 Oct 2013 (upper graph) and for the past 1 year (lower graph) |
 |
| The typical view inside a stock market office. The large electronc boards display the real-time share prices for many different companies |
However, the conditions are different. For example, the base year (for Bursa Malaysia) is 1964 and the value of the index keeps changing every second (it is not static). Take a look at the chart below:
 |
| The value of Bursa Malaysia between 30 Sept and 4 Oct 2013 (upper graph) as well as between Oct 2012 and Oct 2013 (lower graph)
References:
|
2. http://www.pbebank.com/corporate/ (retrieved 5 Oct 2013)
3. http://en.wikipedia.org/wiki/Stock_market_index (retrieved 5 Oct 2013)
4. www.bursamalaysia.com (retrieved 5 Oct 2013)
5. http://finance.yahoo.com/q/bc?s=%5EKLSE (retrieved 5 Oct 2013)
No comments:
Post a Comment