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As we can read on plus500.com: "The Standard & Poor's 500 index, better known as the S & P500 or simply the S&P, is a collection of the top 500 corporations listed on the US stock exchanges, weighted by their market capitalization. It actually includes 505 positions, because several of these companies have several stock classes listed. For example, Alphabet includes both Class A (GOOGL) and Class C (GOOG) stock quotes. This index is measured by weighted free float stock market capitalization since 2005. This means that only stocks of any company that are publicly traded are included in the quotation in terms of market capitalization The components of this index are listed on the New York Stock Exchange or on the NASDAQ, which is traded from 9:30 am to 4:00 pm EST except for non-trade holidays The S&P 500 (US 500) companies are divided into 11 sectors: Telecommunications Services, Luxury Products, Consumer Products, Energy, Financial Services, Healthcare ia, Industry, Materials, Real Estate, Technology and Utilities. This allows traders to observe not only the index as a whole, but also the performance of companies within individual industries. This provides a greater level of diversification than single-company stock trading. "

S&P500 is an index consisting of the 500 largest companies listed on the American stock exchange. It is considered one of the most important indicators of the stock market condition in the United States. The abbreviation "S&P" comes from the name Standard & Poor's, a company specializing in financial analysis and investment advice.