S&P 500

What does the S&P 500 index track?

• The performance of 500 large American companies

• The performance of all global companies

• Only technology companies in the U.S.

• The value of the U.S. dollar

On which stock exchanges are the companies in the S&P 500 traded?

• London Stock Exchange and NYSE

• NYSE and Nasdaq Stock Market

• Tokyo Stock Exchange and Nasdaq

• Only NYSE

Approximately what percentage of the total value of all U.S. stocks does the S&P 500 cover?

• 25%

• 50%

• 75%

• 100%

How often is the S&P 500 index updated?

• Weekly

• Monthly

• Daily

• Yearly

Why do investors and financial analysts closely watch the S&P 500?

• To predict weather patterns

• To gauge the overall direction of the stock market

• To track global currency exchange rates

• To monitor real estate prices

Which of the following best describes the main purpose of the S&P 500 for investors?

• To provide information about international trade

• To help understand the health of the U.S. economy and make investment decisions

• To track the performance of small businesses

• To monitor government spending

If the S&P 500 is considered a good indicator of the U.S. stock market’s health, what might a significant drop in the index suggest?

• The economy is growing rapidly

• There may be concerns about economic slowdown

• All companies are increasing dividends

• The U.S. dollar is strengthening

If a company is removed from the S&P 500, what does this mean for the index?

• The index will now track 499 companies until a replacement is added

• The index will stop being updated

• The index will only track that company

• The index will include more than 500 companies

How might economic news influence the S&P 500 index?

• It has no effect on the index

• It can cause the index to fluctuate up or down

• It only affects bond prices

• It only affects international markets

Why is the S&P 500 considered a valuable tool for understanding the U.S. stock market?

• Because it tracks only one industry

• Because it provides insights into the health of the economy and market performance

• Because it includes only small companies

• Because it is updated once a year