Question

Which one of the following statements is​ correct? A. The​ S&P 500 Index is carefully constructed to reflect the values of​ large, medium and small capitalization companies. B. The​ S&P 500 Index is based on 500 large companies that trade on U.S. exchanges. C. The​ S&P 500 is based on the 500 largest U.S. companies as measured by market value. D. Because of mergers and​ bankruptcies, the​ S&P 500 Index no longer contains 500 stocks.

Answer 1

Answer: B. The​ S&P 500 Index is based on 500 large companies that trade on U.S. exchanges

Step-by-step explanation:

The S&P 500 simply helps in the measurement of the performance of the stock of about five hundred bug companies which are being listed on the United States stock exchange. It is an equity indices which is usually followed.

Some of the largest organizations that can be seen in the indices are Amazon, Microsoft, Tesla, Johnson & Johnson, Chase & Co. etc.