S P 500

Most industries have their own terminology. Some even have a slew of unique acronyms. Options trading is certainly no exception. Experienced traders already know that the S & P 500 is the larger set from which the OEX is pulled. The OEX, of course, is the ticker label for the index of the S & P 100. The larger index, the S & P 500, includes 500 of the large-cap companies. Most of these corporations are based in the United States. The term S & P 500 is used to refer to the group of stocks as a whole, but the term is also used as a reference to the 500 businesses trading stocks in that index.

Aside from the Dow Jones Industrial Average, the S & P 500 is the most popular index to track the performance of those top 500 businesses. Most economists consider the S & P 500 a good barometer for the volatility of the American economy as a whole. The S & P 500 index is often used as a baseline for comparison of stock and mutual fund performance charts.

More About the S & P 500
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