| Any successful stock investment strategy should | | | | equity securities trading market in the United |
| focus on maximizing the amount of money you | | | | States. Previously traded under the symbol QQQ, |
| make. After all, unless you're trying to take over | | | | this EFT gives you a lot of trading power while |
| a company, the only reason that you trade stock | | | | eliminating the volatility commonly associated with |
| is to make money. One of the best ways to | | | | trading stocks for an individual company. |
| maximize your effort when it comes to investing | | | | If you are new to the concept of index tracking |
| stock is to trade index tracking stocks. | | | | stocks, you should consider studying them and |
| Also known as exchange traded funds or EFT, | | | | adding one or more EFT to your stock portfolio. |
| these new stocks on the block give you the | | | | You can find index tracking stocks that cover any |
| leverage power to trade stock for entire industry | | | | industry including the Internet, oil, pharmaceuticals |
| with one symbol. This means that one single | | | | and health care, real estate, and manufacturing. |
| share of an index stock is like buying a portion of | | | | There are even index stocks that cover every |
| the dozen to over 10,000 stocks that make up | | | | public company found in a single country. If you're |
| the index. | | | | interested in investing in a country like Mexico or |
| Here are three popular examples: | | | | Taiwan, trading an index stock which covers all of |
| Dow Jones industrial average: EFT symbol DIA | | | | the securities for one of those countries may be |
| Also known as diamonds, this index stock | | | | the easiest way to go. |
| represents all of the stocks which make up a | | | | Index stocks are a relatively new trading vehicle. |
| Dow Jones industrial average. So when the Dow | | | | They most likely owe their existence to the |
| goes up, so does the stock price for DIA. Any of | | | | information technology available today. The stock |
| the other trends also apply to this and any other | | | | price for an index tracking stock is a real time |
| index stock. | | | | reflection of the accumulated value of all of the |
| S&P 500: SPY | | | | stocks it contains. While this is also true of mutual |
| Trading $100 worth of this index stock is like | | | | funds, index tracking stocks are faster moving |
| buying a portion of the 500 largest companies | | | | and you don't pay anyone to maintain a portfolio |
| which make up the S&P 500. They're the | | | | of securities. You simply buy and sell the stock as |
| 500 largest companies for a reason and trading an | | | | you would any other security. |
| index stock which contains 500 companies can | | | | The convenience and ease of use of these |
| help some people take the emotional attachment | | | | exchange traded funds have made them very |
| to an individual company out of their investment | | | | popular. Their inherent diversification allows you to |
| equation. | | | | invest in an entire industry through a single trade |
| NASDAQ: QQQQ | | | | and for many people that makes an EFT a wise |
| The National Association of Security Dealers | | | | element of a smart stock investment strategy. |
| Automated Quotations is the largest screen-based | | | | |