Buying the index

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Buying the index

Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the same return.

Buying the Index

The act of buying all stocks tracked in the S&P 500 in proportion to their representation in that index. One buys the index when one wants to achieve the same return as the S&P 500 itself. The S&P 500 is the index used for this because it is considered an indicator of the state of the broader economy.
References in periodicals archive ?
ETFs provide investors with the ability to buy the index through a single trade on the exchange.
Inclusion in the Index will further support the development of the stock as investors buy the Index constituents to build and run a rage of investment products.
Societe Generale's derivative strategists said the rally in the FTSE was now likely to pause and recommended that investors sell options to buy the index at 7,000 points by December.
In the stock markets investors should be looking to stock pick and look for the jewels in the market rather than buy the index.
Consequently if you had been able to buy the index and reinvest the income you would have made a profit over the 10 years of around 9%.
So if your view is that commodities generally will rise, then to buy the index is a safer bet and surer way to profit.
97; use these funds to buy the index components for $1408.
Investors can buy the Index by investing in an exchange traded fund (ETF), the PowerShares Golden Dragon Halter USX China Portfolio .
Plus Argos has agreed to buy the Index brand from Littlewoods, with 33 Index stores due to be converted to the Argos brand later this year.
These might be call options, the right to buy the index, or put options, the right to sell the index.
If they buy the index, they buy every bad thing that goes along with it and end up with a highly volatile earnings profile.
The Euro STOXX 50 index has also formed a "golden cross" technical trading pattern - formed when its 5-day moving average level crosses above the 200-day moving average level - which could also act as a signal to buy the index.