WEEK 2 INVESTING - INDEX FUNDS

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Last updated 2:56 AM on 5/11/26
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5 Terms

1
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What is an index?

An index is a pool of high earning companies combined rather than just 1 specific stock/market.

2
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Why are indexes so good?

They build consistency rather than focusing on intensitity (volatility).

3
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What do you own in an index?

A slice of the market winners themselves rather than competing for shares in one company.

4
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What is the benefit of diversification?

If one company does bad, others can carry the weight.

5
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What does a person mean when they say “the market was up today”.

They mean - Tech, healthcare, finance, energy, industries, and consumer goods were growing.