Prior to the development of ________, an investor who wanted to speculate on the future course of aggregate stock prices had to buy or short individual stocks.

Question

Quizplus · Accepted Answer

Stock index futures provide an investor a convenient and efficient way to speculate on the future course of aggregate stock prices without buying or shorting individual stocks. Mutual stock funds and mutual bond funds are investment vehicles that pool money from multiple investors to buy stocks or bonds, respectively. Bond index futures deal with the future prices of bond indices, not stock prices.

Prior to the Development of ________, an Investor Who Wanted