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Why is the S&P 500 Stock Index used as a comparison for investment performance?

April 26, 2017comparison index Investment PERFORMANCE stock Used

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Why is the S&P 500 Stock Index used as a comparison for investment performance?

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The S&P 500 Stock Index is a composite of 500 stocks in which every industry is represented. It is a very good yardstick to use if you want to measure how well you are doing compared to the “average” stock.