What is the S&P 500

This video will talk about the S&P 500 is. After watching this you will know what the S&P 500 is, how its selection works and why it is so important. The S&P 500 is a market index. A market index is just a selection of investments. In the case of the S&P 500 it is a selection of US stock. The S&P 500 consists of 500 US stocks that are selected by the S&P index committee at Standard and Poor's (a financial services firm). The index committee consists of analysts and economists. Standard and Poor's index committee aims to put the 500 most widely followed stocks in this market index. Leading companies are intended to go in the S&P 500. Companies can be replaced overtime in this market index. For example, if a company goes bankrupt and is no longer desirable), this company will probably be dropped and replaced by a company that the S&P index committee approves of. The S&P 500 is important because it is commonly known as the market index that represents the US market as a whole. Many investors (including myself) and mutal funds compare their investment results to that of the S&P 500. Ending beat by Lynval D'tchalis, check him out here: https://soundcloud.com/lynval-sundayswag-dtchalis Please Comment, Like, Subscribe and Share! We are working really hard and we're providing these educational videos for FREE, please help us out and spread the word, it would mean a lot to us! If you would like to know more about us and the progress of our videos follow us on twitter @MrSoniBros and @MrNikkyG. Like us on Facebook at facebook.com/mrsonibros