Investor Glossary-s&p 600 indexInvestor Glossary-s&p 600 indexInvestor Glossary-s&p 600 indexInvestor Glossary-s&p 600 indexInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

S&P 600 Index

The HTML to link to this page

The S&P 600 Index is an equity index representing 600 small-sized companies in various industries. The S&P 600 Index is also called the S&P SmallCap 600 Index. The S&P 600 Index was launched in 1994. The S&P 600 Index is a benchmark for evaluating the investment potential of profitable small companies. Although the S&P 600 Index is not as liquid as its counterpart, the Russell 2000 Index, the S&P 600 Index is more selective in which company can be included which results in an index with stronger and more viable companies. The S&P 600 Index represents about 3% of the entire U.S. equity market. The S&P 600 Index is weighted by market capitalization. The S&P 600 Index includes small cap stocks with market capitalization ranging from about US$300 million dollars to about US$2 billion. To be included in the S&P 600 Index, a company must be a US company with strong financials (i.e. as reported earnings must be positive for 4 quarters in a row). An S&P 600 Index company must have good liquidity. An S&P 600 Index company must also be an operating type of company (i.e. no holding companies for example but REITs are allowed). The S&P 600 index is calculated by Standard and Poor's in accordance with published specifications. The S&P 600 Index is reconstituted on an as needed basis by S&P economists, index experts, and members of the SP Index Committee. In 2005, Standard and Poor's developed sub indices to the S&P 600 Index. The S&P 600 sub-indices are part of the SP/Citigroup Style index series. The S&P 600 sub-indices are listed as S&P Composite 600/Citigroup growth and value indices and S&P Composite 600/Citigroup pure growth and pure value indices. Various Exchange traded Funds (ETF) (i.e. iShares S&P SmallCap 600 Fund) and mutual funds offer investment vehicles to trade the S&P 600 Index.

Rate this S&P 600 Index definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use