The Standard and Poor's 500 index is
A) an index of a basket of consumer good purchased by the typical consumer.
B) an index based on the stock prices of 30 actively traded large companies.
C) an index based on the 500 largest firms traded in the three biggest stock markets.
D) an index of 5,000 companies traded on the national association of securities dealers automatic quotation system.

Question

Quizplus · Accepted Answer

The Standard and Poor's 500 index, commonly referred to as the S&P 500, is an index based on the 500 largest publicly traded companies in the United States. These companies are selected based on their market capitalization, liquidity, and other factors. The S&P 500 is often used as a benchmark for the overall performance of the stock market, and is widely considered to be a strong indicator of the health of the U.S. economy. Options A, B, and D are incorrect as they do not accurately describe the S&P 500.

The Standard and Poor's 500 Index Is