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Money Buzz 11/01

Smart stock tips in a bear market and a new private placement exchange for businesses seeking capital

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This story appears in the November 2001 issue of Entrepreneur. Subscribe »

Feeling lost in the tumultuous, unforgiving market? If you're not sure which individual stocks to keep, compare your current holdings to their respective indices.

You may be convinced to abandon individual stocks altogether in favor of index funds, which invest in the average of the stocks in a sector. The S&P MidCap 400 Index, for example, is a benchmark consisting of 400 stocks. If you own shares in an S&P 400 company (see www.advisorinsight.com for a complete listing), and the stock's value has increased by 5 percent but the index's value has grown by 20 percent in the same time, the stock is underperforming its category.

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