/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q. 24 What is an index fund?... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 17: Q. 24 (page 426)

What is an index fund?

Short Answer

Expert verified

It is an investment strategy that employs a rules-based fund.

Step by step solution

01

Definition of Mutual fund.

A mutual fund is indeed a collection of assets from several different types of investors.

02

Explanation of solution.

An indexing fund is a type of mutual fund that is intended to follow established guidelines in order to monitor a specific set of trends. Investors do not have to be concerned and can focus on analyzing the stocks. Their investment will be in line with the current trend. S&P 500 is the most popular index fund in the United States, and it is based on S&P Dow Jones Indices' criteria.

They are a collection of firms whose stocks are classified in groups based on their size, qualities, and income. Overall, and has a more diverse portfolio with lower fees and operational costs because companies who do not follow the rules are removed from the fund, and there is no need for active management to inspect and track things.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

When do firms receive money from a stock sale in

their firm and when do they not receive money?

If you owned a small firm that had become

somewhat established, but you needed a surge of financial capital to carry out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.

What is a dividend?

Name several different kinds of bank account. How are they different?

How do the shareholders who own a company choose the actual company managers?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.