I think it's past time for another Stupid Questions thread, so here we go.
This thread is for asking any questions that might seem obvious, tangential, silly or what-have-you. Please respect people trying to fix any ignorance they might have, rather than mocking that ignorance.
Index funds have been recommended on LW before. I have a hard time understanding how it would work investing in one, though. Do you actually own the separate stocks on the index of the index fund, or do you technically own something else? Where does the dividend money go?
Anyone know how much this is applicable to the UK?