Sept. 2

  • Adjusted stock price: keep today’s price the same, adjust based on dividends and stock splits
  • S&P 500 is an index of the largest U.S. equities, good for analyzing market trends
    • Dow Jones is not a good index; relevant for historical reasons, but isn’t a good signal because of poor weighting decisions and slow turnover
  • Other indexes are NYSE Composite, NASDAQ Composite, FTSE 100, Nikkei 225, DAX, Hang Seng
  • ETFs incur a fee but allow investors to be invested into a bigger share of a market, can be passive strategy (track SNP) or active (manage a strategy)
  • ETF arbitrage