buying the index


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.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
buying power buyout