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- Recommended Financial Spread Betting Books
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.
- Financial Spread Betting is a leveraged product, tax exempt and lets you go long or short. For more information refer to financial spread betting guide or compare spread betting accounts by S&P500 share spreads.
- Contract For Difference (CFD) is also a leveraged product, lets you go long or short, but unlike spread betting is not tax exempt. For more information refer to contract for difference guide or compare CFD accounts.
- Share dealing is the most common way to invest money in the stock market. Usually share dealing is not leveraged (although some stockbrokers have credit accounts) and incurs capital gains tax. Learn more about stock brokers and compare share dealing accounts.
Additional Information
- WSJ - official website of Wall Street Journal
- Standard & Poor's - official website of Standard & Poor's
