Stock indices: the S&P 500, NASDAQ and AMEX

Let's start with the stock index S&P 500. The index includes 400 industrial, 20 transportation, 40 utility and 40 financial companies. This index is particularly important, as its basket comprises about 80% of the capitalization of the NYSE.

 

First the index was developed and calculated 1957 Standard and Poor's, analytical studies dealing with financial markets. Now the S&P 500 is popular and not far behind from all the famous Dow Jones Industrial Average.

 

The most popular and highly capitalized companies included in the S&P 500 is Apple, Microsoft, Amazon and Facebook. However, all companies from the basket of S&P 500 is divided into 11 sectors:

  • IT;
  • Finance;
  • health;
  • energy;
  • telecommunications;
  • industry;
  • consumer products;
  • raw materials;
  • real estate;
  • utilities.

 

To get To portfolio S&P 500 can not every company. To match, the company must be exclusively American, to bring a stable income for four consecutive quarters and the capitalization of not less than 4 billion USD, having 250, 000 shares per month in turnover, 50% of which must be in public circulation.

 

In addition, every three months the S&P 500 index is recalculated and some companies unable to leave because of several reasons:

  • the company has ceased to meet multiple criteria;
  • the company does not meet the requirements due to: mergers, acquisitions, or restructuring.

 

For the picture it should tell you about other equally important indices in the us stock market, this includes:

  • Stock index exchange NYSE. This index shows the average value of all presented on the New York Stock Exchange instruments adjustments on the factors of mergers and acquisitions, and the dynamics of entry and exit of companies from the index. The NYSE Composite Index was introduced in 1965
  • Stock index of the NASDAQ stock market. Stock market index the NASDAQ it includes such publicly traded companies as: AmericanAirlines Group Inc, Apple Inc, AdobeSystems Inc. and others. The index is calculated on the basis of all issuers listed on the exchange. NASDAQ was introduced in 1971. It should be noted that an alternative index acts as the NASDAQ-100, he calculated the market capitalization of 100 companies that are registered on NASDAQ and are not included in the financial sector.
  • Stock index stock exchange AMEX. Another publishes the American stock exchange index AMEX Major Market Index consists of the 20 most highly capitalized companies such as American Express, Boeing, Chevron and Hewlett Packard. AMEX was introduced in 1983.
11 June, 2020
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