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What is the S P 500?

Updated: 9/11/2023
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16y ago

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An index which performance generally reflects the returns of the large-company US universe. It is computed by Standard and Poor's, a division of McGraw-Hill Company. The 500 stocks are chosen by the S&P committee, and the index is market-value weighted. This means that the movements in price of companies whose total market valuation is larger will have a greater effect on the index. It is preferred by investment professionals over DJI because of its broader range of industries included. In addition, S&P includes DJI and some of NASDAQ stocks.

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16y ago
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