The S&P 500 Is a Very Important Index

An index is essentially something that says that these key stocks represent a really good view of what the whole market is actually doing. The Dow Jones Industrial Average was created in the late 1800s and tracks 30 industrial stocks. S&P 500 started, I think, in 1926 and it is 500 of the best companies in the country,. And those 500 companies represent the market.