The S&P/ASX All Ordinaries share price index represents:

Question

Quizplus · Accepted Answer

The S&P/ASX All Ordinaries share price index represents changes in aggregate share market values of the largest 500 companies in the Australian Stock Exchange. It is a capitalization-weighted index, which means that larger companies have a greater influence on the index's performance.

Choice B is incorrect because the index only represents movements in the Australian share market and not how it performs relative to international markets.

Choice C is incorrect because the index does not represent the historical capitalisation of the 100 largest corporations but rather the largest 500 companies.

Choice D is partially correct in that the index represents changes in share market value, but it does not include dividend reinvestment as it only considers share prices.

The S&P/ASX All Ordinaries Share Price Index Represents