What does it mean to "buy the market"?

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Duncan Macdonald

11 October, 23:49

What does it mean to "buy the market"?

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Answers (2)

Know the Answer?

Reina Mcconnell · Answer 1

Buying "the market" means you own the whole basket of stocks

Jocelyn Cameron · Answer 2

Invest in the market - not individual stocks

Explanation:

For simplicity, "the market" usually means the S&P 500 (the 500 largest company stocks you can buy) ... Buying "the market" means you own the whole basket of stocks, and buying this basket has given a return of 9.55% per year on average.