What Does It Mean To Be A Part Of An Index?

In this episode, we discussed the concept of an index. Regardless if it's the Dow Jones Industrial Average (“DJIA”), S&P 500, or the Nasdaq, they all serve the same function: to track a portion of the stock market. Dan and Tim briefly introduced the history of indices: who created them, who is operating them, and why we have them. Nathaniel added, like anything else, it's important to understand the companies’ incentives that manage these indices for you: they are not do...