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Brief Description for the Index  Form

Brief Description for the Index Form

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hi it's Patty Hearst marketplace so an index is kind of like a basket of shares of select companies right so you can have a small basket like the 30 shares and the Dow Jones Industrials we can have an enormous basket all right like the more than 3,000 shares that are in the Nasdaq index the Nasdaq of course is a very tech heavy index now an index fund is a way for individual investors like you or me to get our money to move in the same way as these indices without having to buy every single one of the shares that's in the index like you wouldnt want to be buying all 3000 shares on the Nasdaq for example so to show you how this works when it introduced you to Jimmy Jimmy is a big fan of technology and he actually wants to invest in a tech index fund so what he does is he finds a fund that will actually replicate the movements in the Nasdaq and the way this works is these managers take Jimmy's money and all the rest of the investor other investors money that inves

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