Standard and Poor's 500

What is Standard and Poor's 500?

The S&P 500 is an index of 500 large-cap American companies that are used in the stock market. By representing the risks and returns of the largest corporations, it displays the performance of the market.

It keeps track of the stock market index and provides information on the risks and profits of the companies that make up that index. The S&P value of a company is determined by dividing its market capitalization by the total market capitalization.

The S&P 500 is a float-adjusted index. It estimates the value of shares that are traded publicly, omitting those that are owned by governing bodies or other institutions. Even while companies at the top of the list have a much greater impact than those at the bottom. Any change in the share prices of S&P 500 companies has an impact on the index's worth.