What is the S&P 500?

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What is the S&P 500?

Key Takeaways

  • The S&P 500 is a stock market index that tracks the performance of the 500 largest US public companies.
  • The companies are chosen for their size, industry representation and overall significance to the U.S. economy.
  • Unlike indexes that simply average stock prices, the S&P 500 is market capitalization-weighted.
  • By comparison, the Dow Jones Industrial Average tracks only 30 large firms and is price-weighted.