How do mutual fund companies afford index funds?

If a if a mutual fund company wanted to invest in an index fund that track the S&P 500 what do they have to individually by the chairs and therefore pay a commission for every individual transaction that they incur? This might be a dumb question but I'm kind of confused about it

Submitted August 12, 2017 at 02:00PM by Donnie541
via http://ift.tt/2uB1bKw

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