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Index investing Going by the numbers
By Jakob Jelling

The Dow, the NASDAQ, the S&P 500 - these are stock indexes, company structures that keep track of the values of listed stocks and enable brokers and others to trade in them. Index investing involves holding a portfolio of stocks or a mutual fund spread across an index, so that the value of the stocks is relatively equivalent to the value of the index at any given time.

The three big funds aren't the only indexes available for investing; there are thousands of others, including not only American-based indexes but indexes specific to other countries and international indexes. When looking at index investing, you should keep in mind the wide variety of possibilities for your invested cash....
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Copyright 2010
 

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