: S&P 500 Index Value What does the 2886.98 value mean as it relates to the S&P 500 index?

Vote Up Vote Down   0 Reactions

Login to give Reaction!

The S&P 500 index is a float-adjusted market-cap weighted index. It’s calculated by taking the sum of the adjusted market capitalization of all S&P 500 stocks and then dividing it with an index divisor (8332.84 as of 3/31/19), which is a proprietary figure developed by Standard & Poor's.
The Investopedia article What Does the S&P 500 Index Measure and How Is It Calculated? offers

Being float-adjusted, the index is continuously recalculated based on the shares trading. The divisor is adjusted when there are stock splits, special dividends, or spinoffs that could affect the value of the index. The divisor ensures that these non-economic factors do not affect the index.
The index is calculated as follows:

SP500 Index = Market Cap of All SP500 Stocks
? ------------------------------
Index Divisor