INDEX PLAYSINDEX PLAYSConventional wisdom says money can be made buying stocks just added to a major index. On June 1 came news that Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. and Travelers will replace General Motors and Citigroup in the Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. . Time to buy? A study by Messod Daniel Beneish of Indiana University's Kelley School of Business The Kelley School of Business of Indiana University is one of the top ranked business schools in the USA. It is home to approximately 4,600 full-time students on its Bloomington campus and approximately 1,200 students on its Indianapolis campus. and John Gardner of King's College London found no salutary impact on stocks that entered the Dow--just those added to the Standard & Poor's 500-stock index. (S&P, like BusinessWeek, is a unit of The McGraw-Hill Companies.) The difference comes down to the buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. of index funds, which have about 50 times more money in the S&P 500 than in the Dow. 
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