S&P 500 Composite Stock Index

S&P 500 Composite Stock Index

Prev Question Next Question

Question

The S&P 500 Composite Stock Index is favored by most institutional investors and money managers. What does S&P stands for?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B

The correct answer is B. Standard and Poor.

The S&P 500 Composite Stock Index is a widely recognized and closely followed stock market index. It is favored by institutional investors and money managers as a benchmark for evaluating the overall performance of the U.S. stock market.

The acronym "S&P" stands for "Standard and Poor." The name originates from the two founding companies, Standard Statistics Company (founded in 1922) and Poor's Publishing Company (founded in 1860). These two firms merged in 1941 to form Standard & Poor's Corporation, which is now known as S&P Global.

Standard & Poor's Corporation is a renowned financial services company that provides various financial market intelligence, including credit ratings, indices, and research. The S&P 500 index is one of the most prominent indices created by Standard & Poor's and is considered a barometer of the overall health and performance of the U.S. stock market.

The S&P 500 index comprises 500 large-cap companies listed on U.S. stock exchanges, representing various sectors of the economy. It includes companies such as Apple, Microsoft, Amazon, Exxon Mobil, and many others. The index is weighted by market capitalization, which means that larger companies have a greater impact on its performance.

Institutional investors and money managers often favor the S&P 500 index because it provides a broad representation of the U.S. stock market. It allows them to track the overall market performance and make informed investment decisions based on the index's movements.

To summarize, the S&P 500 Composite Stock Index is a widely recognized benchmark favored by institutional investors and money managers. The acronym "S&P" stands for "Standard and Poor," which refers to the two founding companies that merged to create Standard & Poor's Corporation, now known as S&P Global.