Posts Tagged ‘amount of time’

Since stock index funds buy the same stocks as the index, won't their prices become artificially inflated?

My understanding of the DOW or S&P500 index funds is that if GE represents say 1% of the S&P500, it will represent 1% of the value of the S&P500 index funds.

Since many people invest in these index funds to represent the market, won’t any company in the index be artificially inflated in price due to heightened demand?

Another way to ask this is: Do companies that join an index experience a bump in share price & do companies that leave experience a drop within a short amount of time?

Thanks!


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What stock is good to invest in at this moment?

We are doing a stock simulation thingy for SS class, and we need to find some good stock to invest in. Anything good? It just needs to have been doing well for a while now.
It needs to be with what will make the most money in the least amount of time.


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Mutual funds?

I have a small amount of money I would like to invest. I have heard of mutual funds but what are they? how do you get them? how much do they cost? how much money can you make from them? Is there a certain amount of time you have to wait before getting the money from them? Do they require any "upkeep"? Anything else I should know about mutual funds?

Do you have suggestions for other easy investments that would be better than a mutual fund?

Sorry for so many questions but i would really appreciate someone knowlegedable to help me out. Thanks!


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