Dictionary
- Income Statement
- A financial statement that shows revenue, expenses and profit during a given accounting period.
- Index
- A benchmark against which financial or economic performance is measured. For example, the S&P 500 or CPI.
- Index Fund
- A mutual fund that seeks to passively match the performance of some market index, such as S&P 500.
- Index Investing
- Index investing aims to earn a rate of return that is identical to the return a benchmark index earns. By constructing a portfolio that is identical to the index, an index fund manager matches its rate of return. The portfolio manager only needs to change the composition of the portfolio when the index changes. Index investing has lower fees than those investing approaches that rely on frequent buying and selling of securities.
- Indirect Quotation
- States the number of units of foreign currency per unit of local or domestic currency. For example, GBP/USD.