A short YouTube explainer by Ndubuisi 'Andy' Egwim that describes the S&P 500 as a stock-market index representing a basket of 500 large companies. The speaker explains the rationale for buying the whole index rather than individual stocks and notes that membership in the S&P 500 changes over time as companies grow or shrink, with a brief comparison to the Dow Jones Industrial Average.
What I said sounds a bit like Jagon is because it's made to sound like Jagon. And that's how the finance industry makes things sound confusing. Basically think of it like this. 500 companies all in a basket and you buy that basket rather than trying to buy one company out of the 500 or one company out of a million companies that might do well. You're saying I'm just going to buy the basket of this 500 because they are the biggest buy size and people say, well, why are you investing in S P500? Does it mean that those companies will do well for forever? Not really. There are some companies that were in s and P500 20 years ago that no longer there. Tesla was not in S P500 when I started investing, but now Tesla is an s and P500. So as companies are growing in size, they might get into the S P500. As companies are having issues, they might be dropped out of the S P500. So it's a type of index, obviously there's Dow Jones Industrial Average, it's a different type of index. It tracks the different type of company.
