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?

1. 2 only
2. 1 and 3
3. 2 and 3
4. None

Explanation

Option (a) is incorrect

• Statement 1 is incorrect because the S&P BSE Sensex consists of 30 blue-chip companies listed on the BSE, not 50. Statement 2 is correct as the Sensex is a free-float market capitalisation-weighted index. Statement 3 is incorrect because the Amsterdam Stock Exchange, established in 1602, is generally considered the world’s oldest formal stock exchange, not the NYSE.

Answer: (a) 2 only