S&P 500

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S and P 500 daily linear chart 1950 to 2016
S&P 500 daily logarithmic chart 1950 to 2016
S and P 500 daily volume chart 1950 to 2016
S&P 500 Log $ Chart 1950 to February 2024 and Other Graphs
S&P 500 Buybacks and Dividends
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S & P 500 Annual Returns

S&P 500 Index is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and is considered to represent the best indication of the U.S. stock market. The index is owned and maintained by Standard & Poor's (S&P), a division of S&P Global.

Overview[edit | edit source]

The S&P 500 was introduced by Standard & Poor's in 1957 as a way to track the performance of the largest companies in the U.S. economy. The index includes companies from all sectors of the economy, making it a good indicator of the overall health of the U.S. stock market and the economy. It is a market-capitalization-weighted index, meaning that companies with higher market values have a greater impact on the index's performance.

Composition[edit | edit source]

The S&P 500 is composed of 500 of the largest companies listed on the New York Stock Exchange (NYSE) or NASDAQ. The selection of companies in the index is determined by the S&P Index Committee, which evaluates the companies based on market capitalization, liquidity, domicile, public float, sector classification, financial viability, and length of time publicly traded. The index is updated quarterly to reflect changes in the market.

Importance[edit | edit source]

The S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities. Many investment products, such as mutual funds and exchange-traded funds (ETFs), are based on or track the performance of the S&P 500. The index is also used as a benchmark for the overall performance of the U.S. stock market and is frequently cited in news reports on the state of the economy and financial markets.

Investing in the S&P 500[edit | edit source]

Investors can gain exposure to the S&P 500 through various financial instruments, including mutual funds, ETFs, and derivative contracts such as futures and options. The SPDR S&P 500 ETF Trust (SPY) is one of the most popular ETFs that tracks the S&P 500, providing investors with an easy way to invest in the performance of the 500 largest U.S. companies.

See Also[edit | edit source]

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Contributors: Prab R. Tumpati, MD