What is the S & P 500 Index?

The S & P 500 is standard & Poor's 500 short for index, which is the index in new York Stock Exchange and NASDAQ an index of the largest listed U. S. Companies (by value).

Where have you heard about the S & P 500?

Financial reports on the U.S. economy may mention the level of the S & P 500, especially when it set a new record, such as 2300 in January 2017.

What you need to know about the S & P 500...

The index includes 500 leading companies, covering about 80% of the market capital, such as the three largest companies Apple, Microsoft and Exxon. Like all major indices, the S & P 500 uses global Industry Classification Standard (GICS) the company is divided into energy, medical, financial, information technology and retail industries.

Decentralized selection and weighting methods make it comparable to dow Jones Industrial Average or indices such as the NASDAQ to distinguish it. Many investors regard it as the best representative of the US stock market and a barometer of the US economy.

The index dates back to 1923, but was expanded to 500 companies in 1957. You can see how the U.S. economy moves during growth and recessions by looking at index performance charts.

The index is developed and maintained by S & P Dow Jones Indices, a joint venture controlled by S & P Global.

The Top 50 of the S & P 500 is an index that measures only the Top 50 companies in the S & P 500.

The index is abbreviated as SPX.