S&P500 – Standard and Poors 500 Index

The Standard and Poors 500 Index (S&P 500) is basically an index of 500 stocks which are chosen to provide a wide range of industries, their liquidity, and market size which are traded on the New York Stock Exchange and the NASDAQ Exchange. The index is considered to provide a universal indication as to the market behaviour of the large caps. However, these 500 companies are by no means the biggest listed companies.

The companies are selected by a team of analysts at Standard and Poors called the S&P Index Committee. Standard and Poors is a company specializing in the financial research and analysis of stocks and debt instruments.

The S&P 500 dates back to 1923. When it was first formed it only contained 233 companies, but grew to contain 500 by 1957.

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