Definitions for "Standard & Poor's 500 Index"
Keywords:  dow, jones, broader, poor, sector
A measure of stock price changes based on the performance of 500 selected common stocks. The average takes into account not only the price of the stocks but also the number of outstanding shares. Abbreviated S&P 500, it is a broader market indicator than the Dow, which consists of only 30 stocks.
Composed of 500 stocks, it is a value weighted index where the stocks with the highest value (number of shares outstanding multiplied by the price per share) have the greatest affect on the index. It is a broader representation of the market than the Dow Jones Industrial Average but both move in tandem most of the time and both are frequently used to gauge the health or direction of the stock market as a whole.
An index of 500 major U.S. corporations. There are 400 industrial firms, 20 transportation firms, 40 utilities, and 40 financial firms. This index is value-weighted.