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Glossary entry · What you own
Index
Definition
A standardized list of investments designed to represent a slice of the market — a country, a sector, a size band. Indices are not something you can buy directly; you buy a fund that tracks one.
Example
The S&P 500 is an index of the 500 largest US companies. The MSCI World tracks ≈1,500 large companies across developed markets.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index fund
A fund that simply mirrors an index, instead of trying to beat it.
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