Quick Definition

The S&P 500 Index is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Examples

• 1An investor tracking the S&P 500 Index might use it as a benchmark to compare the performance of their own investment portfolio.
• 2A mutual fund labeled as an 'S&P 500 Index Fund' aims to replicate the performance of the S&P 500 by holding the same stocks in the same proportions.
• 3Financial news often reports on the rise or fall of the S&P 500 as an indicator of the overall health of the U.S. stock market.
• 4Retirement accounts, like 401(k)s, often include S&P 500 index funds as a low-cost, diversified investment option.

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