Index Investing - Introduction

Stock market talk is everywhere, from TV and radio, to the newspapers and the web. But what does it mean when people say that "the market turned in a great performance today?" What is "the market" anyway?

As it turns out, when most people talk about "the market," they are actually referring to an index. With the growing importance of the stock market in our society, the names of indexes such as the Dow Jones Industrial Average (DJIA), S&P 500 (SPX) and Nasdaq Composite (COMP) have become part of our everyday vocabulary.

This section will define what an index is, discuss some of the major stock indexes and explain how you can invest in the stock market using index funds.