S & P 500 Terminology Flashcards
1
Q
What is the S &P 500 comprised of?
A
It is comprised of 500 large cap stocks leading the U.S. industries. They are selected by how easily the asset can be bought or sold without affecting the assets price.
2
Q
What es large cap mean
A
Large cap refers to companies that are greater than 10B dollars. To find this value, multiply the number of shares outstanding by its stock price
3
Q
Are all the S & P companies US based?
A
No, a few are x-us.
4
Q
Why can’t you invest directly in the S & P 500?
A
It’s an index. You can invest in one of the many funds that use it as a benchmark. You must invest in a mutual fund or an exchange-traded fund (ETF). Such as the Vanguard 500 EFT (VOO).
