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Step 2: Nobel Laureates

that prices in a free market, such as the global stock exchanges, reflect the available information and the forecasts of all market participants. In other words, prices are an effective and efficient means of communication between buyers and sellers.

1975 – First Retail Index Fund On December 31, 1975, Princeton graduate John C. Bogle created Vanguard’s First Index Investment Trust with just $11 million, the first index fund available to individual investors. Now known as the Vanguard 500 Index Fund, John Bogle the fund was initially met with criticism, even earning the nickname, “Bogle’s Folly.” The fund became the security industry’s largest mutual fund in 2000 and as of June 2014, managed nearly $175 billion41. Bogle is widely recognized as a vocal champion of the individual investor, even earning him the moniker of “St. Jack” for his unwavering commitment to keeping fees as low as possible and ensuring fund transparency and purity. Bogle has received significant accolades in recognition for his unselfish efforts. In 2004, TIME Magazine named Bogle one of the world’s 100 most powerful and influential people, and Institutional Investor presented him with its Lifetime Achievement Award. In 1999, Fortune designated him as one of the investment industry’s four “Giants of the 20th Century.” In 1998, Bogle was presented the Award for Professional Excellence from the Association for Investment Management and Research, and he was inducted into the Hall of Fame of the Fixed Income Analysts Society, Inc. in 1999.

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