Australian (ASX) Stock Market Forum

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Re: Share price value v's the all ord's


The asx200 and all ordinaries are indexs, the indexes are assigned a point value that tracks the share prices (by market weight) of all the members of that index.


so if the market capitalisation of the asx 200 is $X Billion dollars the index will be 6,000points, if the capitalisation of the companies drops by 50% the index will be worth 3,000 points.


At any one time some companies will be over valued and others undervalued.


But in general the asx200 @ 3,000 points would be better value (safer prices with higher yield) than the asx200 @ 6,000points (higher risk of corrective falls with lower yield).


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