ABSTRACT
This chapter describes facilities for trading and investing in the Averages and Indexes. It provides a stock that will enable people to make a profit through trading operations, meaning a stock whose price will move over a wide enough range to make trading worthwhile. Purchase of stock in one company that has a somewhat uncertain or fluctuating profit record may be more conservative than purchase of a highly leveraged stock of another company whose basic business is steadier and more conservative. Ownership of a fund can result in tax liabilities as managers adjust portfolios to reflect changing membership in the fund or withdrawals in capital by irate stockholders. The strategy of the long-term investor may be to match the market by using funds or Standard & Poor's Depositary Receipts or baskets, but he does not like to participate in Bear trends. The long-term investor and mid-term speculator attempt to capture long secular trends in the markets.
