Purchasing a portfolio of stocks in all the companies in an index, such as the S&P 500, in the same proportion in which the companies are represented in the index itself. Buying the index allows the investor to bet on the value of the index itself, and will provide positive returns if the stocks in the index increase in value.
Related information about buying the index:
- Buying the Index - Financial Dictionary - The Free Dictionary
Definition of Buying the Index in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Buying the Index? Meaning of Buying the ...
- What is buying the index? definition and meaning
Definition of buying the index: Purchasing a portfolio of stocks in all the ... Buying the index allows the investor to bet on the value of the index itself, and will ...
- Beware the limitations of buying the index - The Globe and Mail
May 11, 2012 ... One adviser's solution is to design portfolios that steer away from resource- geared stock.
- ING DIRECT Canada: The Power of Index Investing
If you simply invested in the entire market by buying the index, you'd do better than actively managed mutual funds most of the time. What's really important to ...
- So You Want To Understand S&P Futures Basis Trades (aka, Index ...
Dec 14, 2010... receiving interest on the money you don't have to spend buying the index itself is equal to buying the index itself and receiving dividends.
- DIA ETF | What is the Diamonds ETF?
While you are buying an asset that emulates the DIJA index, you are not truly buying the index. There is a direct correlation not an exact correlation, so there can ...
- Market Making and the Index Futures Market
No matter what happens, the customer can be guaranteed of the option of buying the index, or the portfolio of the index component stocks, at the price specified ...
- Index fund offers exposure to equities at low cost - Economic Times
Jul 11, 2011 ... In other words, as an investor in an index fund, you end up buying the index. " Index funds are good solutions for investors who want to invest in ...