Page 14 - eBook

LESSON 5

STOCKS & INDEX FUNDS

What are some popular exchanges that stocks trade on? NEW YORK STOCK
EXCHANGE [NYSE], TORONTO STOCK EXCHANGE [TSX], NASDAQ [NSDAQ],
LONDON STOCK EXCHANGE [LSE], etc… You’ve probably heard of these on the

news!

INDEX AND INDEX FUNDS

What is an Index? An Index is a tracker. You’ve probably heard of these names
“The Dow Jones” “The S&P500” “The TSX” on the news a lot. These are trackers

that track a certain number of companies. The TSX tracks all the companies
listed on the Toronto Stock Exchange. The S&P500 tracks the Best 500
Companies in America and the Dow Jones tracks the 30 Strong companies in

America; there are lots of trackers like these.

Some large banks and financial ins�tu�ons have
made an "ETF Index Fund" what's that? An ETF

is an exchange-traded fund. For example, an
investment company/bank will start a fund and
buy all the stocks on the ‘S&P500 Index’ and

you can buy shares of this fund!
Remember the money you saved up, you can

invest that money in a low-cost S&P 500 Index
ETF Fund like ‘VOO’: Vanguard S&P 500 Index
ETF. “VOO” is the ‘�cker’ name of the fund. If

you wanted to google VOO stock or VFV
stock, you could see the stock price

and find the Fund Fact Sheet to
research it further.

Sankeethan Ratneswaran – 2021 Copyright 14