As an indicator used to show an overall price level of stock market or the fluctuation of stock prices, a stock price index is used as an important measure of national economic status depending on the developmental stage of financial industry, the stock price indices are utilized in a variety of ways, including as a benchmark for measuring the portfolio performance, underlying index for the index derivative products and products linked to stock price indices.
Korean securities market began to calculate and make public the stock price index(Adjusted Stock Price Average Index)in 1964, and then introduced the Korea Composite Stock Price Index(KOSPI) that is based on the market capitalization in 1983, In June 1996, KOSPI 200 was introduced to prepare for the launching of the derivatives market, i.e. KOSPI200 futures and options.
KOSDAQ was introduced as the market indicator for the Kosdaq Market that was established to facilitate the capital raising by the venture industries in 1997 and KOSDAQ50, which is the underlying index for KOSDAQ50 futures and options, introduced in November 2002.
The Korea Exchange developed KRX 100 to reflect the rationale for the consolidation of the markets, i.e, choosing its constituents from both the Stock Market and Kosdaq Market, and introduced in June 2005.
The constituents of KRX 100 are the blue chip stocks representing the KRX market that are chosen on the basis of a variety of financial criteria such as the market value (market capitalization)and market liquidity (trading value) as well as the profitability, stability and soundness.
To ensure that KRX100 accurately represents the market and facilitate the convenience in use, the free-float weighted and capitalization limit methods are adopted
As an indicator used to show an overall price level of stock market or the fluctuation of stock prices, a stock price index is used as an important measure of national economic status depending on the developmental stage of financial industry, the stock price indices are utilized in a variety of ways, including as a benchmark for measuring the portfolio performance, underlying index for the index derivative products and products linked to stock price indices.Korean securities market began to calculate and make public the stock price index(Adjusted Stock Price Average Index)in 1964, and then introduced the Korea Composite Stock Price Index(KOSPI) that is based on the market capitalization in 1983, In June 1996, KOSPI 200 was introduced to prepare for the launching of the derivatives market, i.e. KOSPI200 futures and options.KOSDAQ was introduced as the market indicator for the Kosdaq Market that was established to facilitate the capital raising by the venture industries in 1997 and KOSDAQ50, which is the underlying index for KOSDAQ50 futures and options, introduced in November 2002.The Korea Exchange developed KRX 100 to reflect the rationale for the consolidation of the markets, i.e, choosing its constituents from both the Stock Market and Kosdaq Market, and introduced in June 2005.The constituents of KRX 100 are the blue chip stocks representing the KRX market that are chosen on the basis of a variety of financial criteria such as the market value (market capitalization)and market liquidity (trading value) as well as the profitability, stability and soundness.To ensure that KRX100 accurately represents the market and facilitate the convenience in use, the free-float weighted and capitalization limit methods are adopted
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