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Screen-Shot-2020-12-18-at-3.23.58-PM-1.png What is the S\u0026P 500? Current investment We can\u0027t avoid that. The US stock market index influences stock markets around the world. The S\u0026P 500 is the leading indicator of the global economy because it includes the top 500 US companies, representing more than 80% of all US publicly traded companies. As a result, when the S\u0026P 500 index goes up and down, it will have an impact on the world\u0027s financial markets. This article will introduce investors to the US stock index S\u0026P 500, what is the S\u0026P 500, how is the S\u0026P 500 calculated, the list of stocks in the S\u0026P 500, S\u0026P 500 and Dow Jones, and how they differ. What is the S\u0026P 500 and how did it come about? The S\u0026P 500 is a stock market index that tracks the stocks of 500 large US companies, representing the performance of more than 500 companies listed on the American stock market. Examples of companies included in the S\u0026P 500 index are Amazon, American Airlines Group. Bank of America, BlackRock, CME Group, Apple, Facebook, Microsoft, Google and Tesla etc. The S\u0026P 500 was created on March 4, 1957 by Standard and Poor\u0027s, a global financial and credit rating firm, to represent the 500 leading stock indexes. American stock market. As a stock market index, the S\u0026P 500 Index is arguably the best gauge. It tracks 500 large companies traded on the stock exchange. highly liquid Including allowing to buy and sell stocks in the stock market more than 10%, etc., which is the result of considering the S\u0026P500 index. Although the Dow Jones index is the most well-known index, But investors often look to the S\u0026P 500 when they want to gauge how the overall market is doing. Therefore, this index is considered a leading economic indicator of the United States. Over the past 10 years, the S\u0026P 500 has yielded 11.09% per year. As of Jan. 14, 2020, it has a YTD yield of 26.65%. How does the S\u0026P 500 work? The S\u0026P 500 tracks the market capitalization index of companies. Market capitalization (Market cap) is the total value of all shares issued by a company. It is calculated by multiplying the number of shares issued by the share price. A company with a market capitalization of $100 billion will receive 10 times the representation of a company with a market capitalization of $10 billion. The total market capitalization of the S\u0026P 500 is $23.5 trillion. It is worth 80% of the total stock market value. The index is calculated by weighting the company\u0027s market capitalization. It measures only shares that are publicly available. It does not include controlled groups, other companies or government entities. The committee selects each of the 500 companies based on liquidity, size and industry type. The index is rebalanced quarterly in March, June, September and December. The company must be based in the United States and have a market capitalization of at least $6.1 billion, and at least 50% of its stock must be public. The stock price must be worth at least $1 per share. 10-K annual reports must be filed, and at least 50% of fixed assets and revenue must be in the United States, and ultimately must be profitable for at least four consecutive quarters. Stocks must be listed on the New York Stock Exchange, the Investors Exchange, NASDAQ or BATS. They cannot be traded directly between buyers and sellers. (over-the-counter) or trading outside the market (pink sheet) How is the S\u0026P 500 calculated? The S\u0026P 500 uses a market capitalization weighted (market cap) method, providing a higher percentage allocation to companies with the highest market capitalization. 2021-08-14_15-04-06-700x288.png List of stocks in the S\u0026P 500 The list of stocks in the S\u0026P 500 includes 500 common stocks of leading US companies in various industries. The top 20 companies in the S\u0026P 500 as of August 31, 2020 follow. Company name Apple Inc. Microsoft Corporation Amazon.com Inc. Facebook Inc. Class A Alphabet Inc. Class A Alphabet Inc. Class C Berkshire Hathaway Inc. Class B Johnson \u0026 Johnson Visa Inc. Class A Procter \u0026 Gamble Company NVIDIA Corporation Home Depot Inc. JPMorgan Chase \u0026 Co. Mastercard Incorporated Class A UnitedHealth Group Incorporated Verizon Communications Inc. Walt Disney Company PayPal Holdings Inc. Adobe Inc. Pfizer Inc. 81iJwNY3DeL.jpg The face of the S\u0026P 500 industry reflects the state of the economy. Based on the S\u0026P Dow Jones Index as of January 14, 2020, with the S\u0026P 500 group divided as follows: Information Technology 23.2% Health services 14.2% Finance 13% Communication Services 10.4% Luxury consumer goods 9.8% Industrial products 9.1% Essential consumer goods 7.2% Power 4.3% Utilities 3.3% Real estate 2.9% Construction materials 2.7% How are S\u0026P 500 and Dow Jones different? The Dow Jones is another stock market index that features large companies.The highlights of the S\u0026P 500 and Dow Jones are as follows: · Dow Jones consists of just 30 companies, each of which is a leader in its respective industry. . The Dow Jones is weighted by the stock price of each company. Not by market capitalization, which means companies with higher stock prices gain more weight. The index is calculated by adding the stock prices of all 30 weighted companies and dividing them by a predetermined constant known as the Dow Divisor. Traders friends, don\u0027t forget to follow the S\u0026P500 index before investing. Because it is an important number that will reflect the market situation each day, ask friends to invest successfully. You can create your own index today using the 8 application. Go see how it works.