The Standard & Poor’s 500 (S&P 500) is a weighted index of the 500 largest American companies listed in theand the . It is the most traded index in the US after the . Trading prices are calculated and published in real time (every 15 seconds).
First published in 1957, the S&P 500 is considered to provide a clear picture of the US economy. The index is owned and maintained by Standard & Poor’s. The 500 leading companies listed on the S&P 500 cover 75% of all US.
The composition of the S&P 500 is put together by a committee. It is understood that the included companies have to be traded publicly and thehave to be sufficiently .
To illustrate, Berkshire Hathaway has an extremely high market capitalisationMarket capitalisation (short: "market cap") is the total ma... More, but because of the very high stock priceWhat are value stocks? A value company is a company that app... More of over $100,000 for an A share, it is actually traded very rarely and therefore lacks the required liquidityWhat is market liquidity? The term liquidity of a market... More. The committee removed the A share from the index and ultimately put in the lower priced B share.