Comments on: What is the S&P 500, and Why Does It Matter to Traders at Banks? https://mergersandinquisitions.com/what-is-the-sp-500/ Discover How to Get Into Investment Banking Fri, 24 Sep 2021 22:15:16 +0000 hourly 1 https://wordpress.org/?v=6.2.2 By: IAN PLESTED https://mergersandinquisitions.com/what-is-the-sp-500/#comment-715733 Mon, 23 Dec 2019 02:43:28 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-715733 Many thanks for the enlightenment, wish I was 60 years younger think I would have ended up with a few million than I have now (all made by my portfolio manager)

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By: M&I - Brian https://mergersandinquisitions.com/what-is-the-sp-500/#comment-701273 Mon, 08 Apr 2019 01:41:25 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-701273 In reply to Taiwo.

It doesn’t really matter, just pick low-cost providers… plenty of online firms do this. Robinhood offers commission-free stock trades. Vanguard is good for low-cost funds and ETFs. Avoid high fees at all costs.

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By: Taiwo https://mergersandinquisitions.com/what-is-the-sp-500/#comment-701011 Thu, 04 Apr 2019 16:46:39 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-701011 Thanks for sharing Brian.. Am about 24 years and so desirous about financial freedom and wealth creation. I hv started the first recommendation by great investors on the path to financial abundance which is self-investment. I came across S&P 500 while reading a book, please can u recommend the best financial institutions to invest with on d S&P 500 stock?

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By: M&I - Brian https://mergersandinquisitions.com/what-is-the-sp-500/#comment-454611 Wed, 20 Apr 2016 14:38:32 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-454611 In reply to Bill.

Thanks! We covered exit opportunities from S&T in a previous podcast:

https://mergersandinquisitions.com/podcast/sales-trading-exit-opportunities/

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By: M&I - Brian https://mergersandinquisitions.com/what-is-the-sp-500/#comment-454609 Wed, 20 Apr 2016 14:37:52 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-454609 In reply to Brad.

Um… sales at a tech company is probably the best method if you’re good at it. The real question is, why is that your goal? If it’s just because you want more money, you should re-think your goal because money yields diminishing returns after a certain point, and that “certain point” is earlier than most people expect.

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By: M&I - Brian https://mergersandinquisitions.com/what-is-the-sp-500/#comment-454608 Wed, 20 Apr 2016 14:36:41 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-454608 In reply to David Harper.

Thanks for adding that (and sorry for the delay in my response, we had issues with comments not being accepted). That’s definitely a good point as well since the S&P completely fails to capture smaller companies.

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By: Bill https://mergersandinquisitions.com/what-is-the-sp-500/#comment-450509 Thu, 14 Apr 2016 19:51:01 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-450509 Hi,

Great Article.

What are the Exit Opportunities for Traders?

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By: Brad https://mergersandinquisitions.com/what-is-the-sp-500/#comment-450508 Thu, 14 Apr 2016 19:49:57 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-450508 Hello,

Based on your own Professional and Personal Experience: What Career-Paths and what Jobs do you know of, have the Potential to earn and make $1,000,000+ a Year?

Do you know what Jobs/Careers have the Highest-Potential of earning 7-Figure+ Salaries Year after Year?

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By: M&I - Brian https://mergersandinquisitions.com/what-is-the-sp-500/#comment-449859 Thu, 14 Apr 2016 02:57:41 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-449859 In reply to Duc.

Thanks! If it’s just the return for *one period*, as in how much the index changed over the course of one month or one quarter, it’s just the simple arithmetic return. But when you’re looking at the returns over an extended time period such as multiple years, you have to use the geometric average or else it will be incorrect (see: http://www.arborinvestmentplanner.com/geometric-average-vs-arithmetic-average-for-investment-returns/). People in media outlets often quote the simple arithmetic average even when they’re talking about the return over many years, which is wrong.

For dividends, it depends on whether you’re looking at just the price return index or the total return index. The price return index only looks at stock price changes so it ignores dividends. But the total return version reflects dividend reinvestment and counts dividends received + stock price appreciation in the returns.

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By: David Harper https://mergersandinquisitions.com/what-is-the-sp-500/#comment-449686 Wed, 13 Apr 2016 22:30:49 +0000 https://www.mergersandinquisitions.com/?p=21976#comment-449686 Thanks SilverSurfer (and Brian)! Very helpful.

I would add that the S&P 500 is a LARGE cap index with a (current) minimum market capitalization of $5.3 billion; i.e., “Unadjusted company market capitalization of US$ 5.3 billion or more for the S&P 500, US$ 1.4 billion to US$ 5.9 billion for the S&P MidCap 400, and US$ 400 million to US$ 1.8 billion for the S&P SmallCap 600.” (S&P Eligibility Criteria)

As a consultant, I often use to see the S&P 500 used as a benchmark without specific regard to the fact that it’s only “large caps.”

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