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Finance: What is the S&P 500? 45 Views
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Description:
What is the S&P 500? It's Standard & Poor's 500 generally largest companies, with a U.S. domestic bias. The S&P 500 is usually what investors think of when they think "the market." This entity is used as an index indicator of stock performance in most calculations, and ticker SPY is the most famous index fund in this group.
- Social Studies / Finance
- Finance / Financial Responsibility
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Company Management
- Terms and Concepts / Financial Theory
- Terms and Concepts / Index Funds
- Terms and Concepts / Investing
- Terms and Concepts / Managed Funds
- Terms and Concepts / Metrics
- Terms and Concepts / Mutual Funds
- Terms and Concepts / Regulations
- Terms and Concepts / Trading
- College and Career / Personal Finance
Transcript
- 00:00
finance a la shmoop. what is the S&P 500? well the S&P 500 is just an index- that
- 00:08
is the standard and poors company assembled 500 stocks put them on a
- 00:13
spreadsheet- this was a spreadsheet in 1957 -and they tracked them. [spreadsheet pictured]
- 00:17
well the index had something like 37 shares of Procter & Gamble, the 23 shares
- 00:23
of Ford, 18 shares of IBM and so on. in the 1950s the S&P 500 totaled something
Full Transcript
- 00:29
like 40 maybe 50 bucks on a good day. at the end of each day the elves who worked
- 00:34
inside of the S&P Factory, they would add up the shares basically ignore any
- 00:39
dividends and send to the press a total which was published to more or less
- 00:43
everyone who cared about investing. well not nearly even a century later the 40 [man reads newspaper]
- 00:47
to $50 reign to the SNP is today knock on the door of 2,500 .so without even
- 00:53
having dividends reinvested you'd have made 50 times your money with dividends
- 00:57
reinvested to buy more shares instead of keeping the cash to buy you know
- 01:02
groceries or electric massage slippers. you'd have made over 70 times your [grocery display case and slippers pictured]
- 01:07
original investment. welcome to America.
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