How does index funds work?
In: 5
You and your 10 buddies each have 1000 bucks, alone you don’t have enough to buy all the stocks in the index you want to replicate in the right quantities. But if you put all your money in one basket you now together have 10000 bucks that is enough to replicate the index. In return you get each 1/10th share of the fund.
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