How is the Index calculated?
The index is calculated by the Standard & Poor’s Corporation and is capitalization-weighted. This means that it gives greater weight to those stocks with greater market value. The market value is determined by multiplying the number of shares outstanding by the price per share. The market value of all of the stocks in the index are added together and divided by a “divisor”, the result is the current value of the S&P 100 Index. Capitalization weighting allows for the index to accurately reflect the performance of the market’s largest and most popular stocks.
The index is calculated by the Standard & Poor’s Corporation and is capitalization-weighted. This means that it gives greater weight to those stocks with greater market value. The market value is determined by multiplying the number of shares outstanding by the price per share. The market value of all of the stocks in the index are added together and divided by a “divisor”, the result is the current value of the S&P 100 Index. Capitalization weighting allows for the index to accurately reflect the performance of the market’s largest and most popular stocks.
