Guide to Trading S&P 500 Shares

The S&P 500 is a stock market index containing the stocks of 500 Large-Cap corporations, most of which are American. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index. The S&P 500 index forms part of the broader S&P 1500 and S&P Global 1200 stock market indices. All of the stocks in the index are those of large publicly held companies and trade on the two largest US stock markets, the New York Stock Exchange and Nasdaq. After the Dow Jones Industrial Average, the S&P 500 is the most widely watched index of large-cap US stocks. It is considered to be a bellwether for the US economy and is a component of the Index of Leading Indicators. It is often quoted using the symbol SPX or INX, and may be prefixed with a caret (^) or with a dollar sign ($).

Where to trade S&P 500 shares

Every financial spread betting, contracts for difference (CFDs) and some share dealing brokers allow clients to buy and sell S&P500 shares. It is crucial to use the right investment vehicle as they offer different benefits and not suitable for everybody.

Additional Information

  • WSJ - official website of Wall Street Journal
  • Standard & Poor's - official website of Standard & Poor's