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[Editor’s note: “3 Different Ways for Newcomers to Buy S&P 500 Stocks” was previously published in September 2019. It has since been updated to include the most relevant information available.]
In case you’re new to investing, among the finest methods you’ll be able to dip your toe into the water is to purchase a mutual fund or exchange-traded fund (ETF) that invests in all 505 of the S&P 500’s shares.
Your first query: What’s the S&P 500? Your second query: How come there are 505 shares, not 500? Each are comparatively painless inquiries to reply.
First, the S&P 500 represents 500 of the biggest and most established corporations listed on a U.S. inventory trade. You’re seemingly conversant in most of the index’s constituents.
The S&P 500’s largest firm by market capitalization [share price multiplied by number of shares outstanding] is Microsoft (NASDAQ:) at $1.2 trillion.
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