index fund
/ˈɪndɛks fʌnd/
a passively managed fund that tracks a market index such as the S&P 500
index fund in a sentence
“Warren Buffett famously recommended index funds for most retail investors.”
Origin of index fund
Latin index pointer, list + English fund from Latin fundus bottom, foundation
Related Words
IPO
initial public offering — the first sale of a company's stock to the public
circuit breaker
a regulatory mechanism that temporarily halts trading when prices fall too sharply
bull market
a prolonged period of rising asset prices, typically defined as a 20% gain from recent lows
bear market
a prolonged decline in asset prices of 20% or more from recent highs
market capitalization
the total market value of a company's outstanding shares, calculated as share price times share count
liquidity
the ease with which an asset can be bought or sold without significantly affecting its price