Standard and Poor’s

Definition

Standard and Poor’s (S&P) is a financial services company known for its stock market indices, such as the S&P 500. It also provides credit ratings for companies and government entities, helping investors assess risk.

5 Must Know Facts For Your Next Test

1. The S&P 500 index includes 500 of the largest publicly traded companies in the U.S.
2. S&P provides a widely followed benchmark for U.S. equity performance.
3. Credit ratings from S&P range from AAA to D, indicating the creditworthiness of issuers.
4. The S&P 500 is often used as a proxy for the overall health of the U.S. economy.
5. Standard & Poor’s was founded in 1860 and has since become a leading provider of financial market analysis.

Review Questions

• What is the purpose of the S&P 500 index?
• How does Standard and Poor’s contribute to assessing credit risk?
• Why is the S&P 500 considered an important indicator of economic health?

Related terms

Dow Jones Industrial Average (DJIA):

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

NASDAQ Composite: An index that includes over 3,000 technology and growth-oriented stocks listed on the NASDAQ Stock Market.

Moody's:

A financial services company that provides credit ratings, research, and risk analysis similar to Standard & Poor's.