Mar 08 2011

What is the S&P 500?

Category: Finance

Answer:

S&P 500The Standard & Poor’s 500 or S&P 500® is a market index that is comprised of 500 companies in various industries throughout the US. It is often regarded as the preeminent indicator for large cap US equities. To be eligible for a listing in the S&P 500 a company must satisfy these requirements.

  • The company must be US based.
  • The company must have a market capitalization of over $4 billion.
  • The company must have four consecutive quarters of positive earnings.
  • The company must have must have 50% of it shared owned by the public.
  • The company must have adequate liquidity and shares sold at a reasonable price.
  • The company must already be listed on the NYSE or Nasdaq.

Continued inclusion in the index is often not subject to a number of these general guidelines.


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