S&P 500 Index – Standard & Poor’s 500 Index Definition;

The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The index is widely regarded as the best gauge of large-cap U.S. equities. Other common U.S. stock market benchmarks include the Dow Jones Industrial Average or Dow 30 and the Russell 2000 Index, which represents the small-cap index.

How to Calculate a Company’s Weighting in the S&P 500

  1. Calculate the total market cap for the index by adding all the market caps of the individual companies.
  2. The weighting of each company in the index is calculated by taking the company’s market capitalization and dividing it by the total market cap of the index.
  3. For review, the market capitalization of a company is calculated by taking the current stock price and multiplying it by the company’s outstanding shares.
  4. Fortunately, the total market cap for the S&P as well as the market caps of individual companies are published frequently on financial websites saving investors the need to calculate them.

SP500 Companies are a great indictor how the global market is performing and bear in mind – besides China US is the biggest consumer of the world. If US & CHINA cough – ALL OF US IN ASIA Will GET FEVER!!!

NOW THAT YOU KNOW WHAT IS SP500 – TIME TO LEARN HOW TO USE IT TO YOUR ADVANTAGE?

Will discuss more in our next article; Soon we will be conducting STOCK MARKET CLASSES ACROSS MINDANAO – CALL SHARON @ +639176511344 for APRIL CLASSES…..

Article by: FINWAZE

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