These market cap eligibility criteria are for addition to an index, not for continued membership. To be included in the index, a stock must have a total market capitalization that ranges from $850 million to $5.2 billion. It covers roughly the small-cap range of American stocks, using a capitalization-weighted index. For example, if one company made up 5 per cent of the total market capitalisation of all the companies on the S&P 500, it would be weighted so that 5 per cent of the index was comprised of that company.The S&P SmallCap 600 Index is a stock market index established by S&P Global Ratings. The weighting system means that a company’s market capitalisation determines what percentage of the S&P 500 it makes up. This is known as a weighting system as it gives greater influence to companies with larger market capitalisations, or ‘weight’, than it does to those with smaller ones. The S&P 500 is structured in a way that takes these disparities into account. The largest companies on the list often have market capitalisations that are substantially larger than the other companies on the list. The market capitalisation of the companies on the S&P 500 varies dramatically.

Have at least 250,000 of its shares traded in the prior 6 monthsĬompanies can move in and out of the index if they stop being able to meet these requirements.

Have been profitable in the prior quarter, as well as in the prior 4 quarters combined.

Market capitalisation is the combined value of a company’s outstanding shares.

Have a market capitalisation of at least $8.2 billion.

To be a part of the index, a company has to meet certain requirements.

What companies are on the S&P 500?Īs its name suggests, the S&P 500 is comprised of 500 companies. If the index is increasing in value, that generally means the economy is doing well and vice versa. The S&P 500 is also used to gauge how the US economy is doing. That means they can use the index and compare it to their own investment portfolio to see how well their stocks have performed. The S&P 500 is generally used as a benchmark figure by investors. The S&P 500 is a stock index that tracks 500 of the largest, publicly-traded companies in the US.

S p index