1. Capital Markets Course 13

2. XIII. Exchange Market Indexes Synthetic products which reflects the securities evolution on market Depending on the component securities: - For stocks - For bonds - For investment funds and other financial assets Depending on the calculation method: - First generation - Second generation Depending on relevance: - General market indexes - Sectorial indexes

3. XIII. Exchange Market Indexes Depending on the calculation frequency: - Real time - At the end of the trading day Depending on market on which securities are traded: - Local indexes - Global Indexes Depending on the institution which calculate the index: - Official index - Calculated by the market institutions with the financial publications Calculated by the financial publications - Calculated by financial intermediary or consultancy companies

4. XIII. Exchange Market Indexes Principles for index construction: - Should reflect the reality - Should not be very complex - Information should be provided by the authorized sources - Data should be continuous and comparable - Should provide needed information Quoted as number of points (transformed in monetary units through a multiplication factor)

5. XIII. Exchange Market Indexes Steps for index construction: - Securities selections - Securities importance for index calculation: - price weighted - market value weighted - equally weighted - Establish the launch date

6. XIII. Exchange Market Indexes Index value computation: - First generation indexes - Second generation indexes

7. XIII. Exchange Market Indexes Important Indexes: - Dow Jones - Standard&Poor’s 500 - Frank Russel - F-T - F-T 100 - Nikkei - Topix - F-T Actuarial - Solomon Russel - Dow Jones Stoxx - Dow Jones Euro Stoxx

8. XIII. Bucharest Stock Exchange Indexes NameIncludesLaunch date BETMost traded 10 stocks19.09.1997 BET - TRTotal return version of BET22.09.2014 BET - PlusVariable number of stocks23.06.2014 BET-FIInvestment funds31.10.2000 BET-BK25 most liquid stocks03.07.2012 BET-NGEnergy sector stocks01.07.2008 BET-XTMost traded 25 stocks01.07.2008 BET-XT-TRTotal return version of BET-XT23.03.2015 ROTXBlue-chip stock15.03.2005

9. XIII. Bucharest Stock Exchange Indexes BET The reference index for BVB Market value weighted 10 most traded stocks Traded on the Regulated Market Diversified portfolio (max. 6 companies from a certain sector) Support for derivatives Calculation frequency - Real time during trading hours (in RON) - At the end of the day (in EUR, USD)

10. XIII. BET

11. Source: www.bvb.ro

12. XIII. Index Utility Reflect the exchange market evolution Support assets for derivatives Term price: calculated based on the theoretical price and on the offer/demand report Margin account is needed !Liquidation: only in cash

13. Bibliografie Anghelache G. (2004), Piaţa de capital. Caracteristici. Evoluţii. Tranzacţii, Editura Economică, Bucureşti Bodie, Z., A. Kane, and A. J. Marcus (2007), Essentials of Investments, 6th edition, McGraw Hill International Edition www.bvb.ro