Category: Business/Financial Management

Analysis:

The S&P500 stock price index is compiled by the American McGraw Hill Company from the New York Stock Exchange, the American Stock Exchange and 500 stocks were selected from OTC stocks, including 400 industrial stocks, 40 public utilities, 40 financial stocks and 20 transportation stocks. The index obtained after weighting by equity capital was based on the period from 1941 to 1943. The stock price during the period averaged base 10, and was promoted by S&P in 1957. Because the S&P index accounts for almost 80% of the total value of stocks on the New York Stock Exchange, and factors such as market value, liquidity, and industry representativeness are considered in stock selection, the index has been extremely popular among institutional legal persons and fund managers since its launch. has become an important reference indicator for evaluating operational performance.

The principle of increase and decrease of index constituent stocks can be said to be the essence of the index. The S&P500 Index is based on the premise of retaining 500 constituent stocks, and maintains one increase and one decrease.

S&P500 Index Futures is a contract based on the S&P500 Index. It is one of the stock price index futures products most recognized by investors in the United States. However, the total contract amount is too high, limiting the participation of general investors. Will. Therefore, on September 9, 1998, the Chicago Mercantile Exchange launched a very highly correlated mini S&P500 index futures, making it more universal. Mini S&P500 futures still use the S&P500 index as the underlying object, but the contract value has dropped from the original $250 times the index futures to $50, and its trading method is mainly electronic trading.

Standard & Poor's 500 depository receipts

Standard & Poor's 500 depository receipts (index fund)

Standard & Poor's 500 mutual fund

Standard & Poor's 500***Same fund