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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.


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Investors could even look at buying the index through instruments like the Exchange Traded Funds (ETFs) which would be less volatile than individual stocks.
When a substantial fraction of market participants are simply buying the index, the market's role in ensuring good corporate governance also disappears.
When a substantial fraction of market participants are simply buying the index, the market's role in ensuring good corporate governance also disappears.
 
 
 
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