The Standard and Poor’s 500 (or more commonly known as the S&P 500) is a stock market index made up of 500 leading companies publicly traded in the U.S. stock market.
The companies are selected by Standard and Poor’s Index Committee and the index is designed to be a leading indicator of the US equities market.
Many people agree that the S&P500 index is a better representation of the US market as it contains 500 large, blue-chip companies compared to the Dow Jones’ 30.
Companies in the S&P 500 Index
The S&P 500 contains all of the stocks in the Dow Jones with an additional 470. Some notable stocks in this additional 470 include: