From Traderpedia

Definition: An index consisting of a the shares of a representative sample of 500 leading companies in the main industrial sectors of the market.

Standard & Poor's 500 (S&P 500), also known as the Spooz, or SPX, is widely regarded as the benchmark index which reflects the overall sentiment of the US market. Consituents are chosen based upon their market capitalization, liquidity, and sector.

Contents 1 History 2 Calculation 3 Related indices 4 External links

[edit] History

Although it dates back to 1923, the index as it stands today was established in 1957 when it was increased from 223 companies up to the present figure of 500.

[edit] Calculation

The index is weighted by market value.

[edit] Related indices

Related indices are the CBOE (Chicago Board of Options Exchange) Volatility Index, known as the VIX, which is a measure of expected market volatility. As well as the S&P Banking Index, known as the BIX, touted by many as a useful indicator of the overall S&P500.

[edit] External links

• Standard and Poor's website