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Term of the Week: Standard & Poor’s 500 (S&P 500)

From Investopedia: An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

Companies included in the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor’s. The S&P 500 is a market value weighted index – each stock’s weight is proportionate to its market value. Read more.

S&P In the News:

Solid Earnings Push Market Higher in the New York Times

S&P 500 Movers: ALXN, WU on Forbes.com

Takeover Fuel Begins to Flow as S&P Bull Run makes History from Bloomberg

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Categories: Industry Ideas