The financial world has its own jargon and acronyms. Don't worry! Most terms are easily explained.
Index: A hypothetical basket of securities such as stocks that represents a segment of the market. An example of an index is the S&P 500, which is a list of 500 of the U.S. stock market's biggest companies. You cannot invest in an index, but you can invest in funds like index mutual funds and ETFs that mirror the index.
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