A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- S&P 500An index tracking about 500 of the largest U.S. companies, widely used as a snapshot of the overall market.
- Dow Jones Industrial AverageAn index tracking 30 large, well-known U.S. companies, often quoted in the news as a market gauge.
- NasdaqA major U.S. stock exchange and index known for listing many technology and growth-focused companies.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
- BenchmarkA standard index used to compare how well your investments or a fund are performing.
- Russell 2000An index tracking about 2,000 smaller U.S. companies, used as a benchmark for small-company stocks.
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