Describe the introduction of index funds

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Index funds were also first offered during the 1980s. These funds allowed investors to become cheaply diversified from idiosyncratic risks faced by individual companies while still allowing them to capture the returns from the broad stock market. What effect do you think the introduction of index funds would have on the supply and demand for stock issuance (as measured by the P/E ratio)?

Reference no: EM13201499

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