Consider the following statements: 1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE) 2. For calculating the Sensex, all the Sensex stocks are assigned proportional weightage. 3. New York Stock Exchange is the oldest stock exchange in the world. Which of the statements is/are correct?

Statement 1 is incorrect: the S&P BSE Sensex comprises 30 well-established, blue-chip companies listed on the Bombay Stock Exchange, not 50 [1]. Statement 2 is correct: Sensex is a free-float market capitalisation weighted index, meaning constituent weights are proportional to their float-adjusted market capitalisations, so stocks carry proportional weightage in index computation [1]. Statement 3 is incorrect: the world’s oldest formal stock exchange traces to the Amsterdam exchange in 1602, while the New York market’s organized trading began later (Wall Street/NYSE developments around 1792), so NYSE is not the oldest in the world.

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Bombay Stock Exchange > p. 276