The vanguard 500 index fund tracks the performance of the s& p 500. to do so, the fund buys shares in each s& p 500 company
a. by purchasing an equal number of shares of each stock in the s& p 500 in proportion to the price weight of the stock in the s& p 500
b. by purchasing an equal dollar amount of shares of each stock in the s& p 500 in proportion to the market value weight of the firm's equity in the s& p 500

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.