Buying the index(redirected from Buys the Index)
Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the same return.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved