Tag - S&P 500 Index

Sheaff Brock | S&P 500 is a measuring stick of the 500 largest US corporations

Please Welcome to the Stage…the Standard & Poor’s Index!

It’s a measuring stick, a benchmark, a way to discuss our investment markets. But what, exactly, does it DO? The S&P 500 index measures the value of the stock of the country’s 500 largest corporations listed on the New York Stock Exchange or on the Nasdaq Composite. The idea? To provide investors a quick look at the stock market and the economy. And, while many investors first check the Dow Jones Industrial Average, the S&P 500 index is the [...]

Price Earnings Ratios as gumball machine | Sheaff Brock Investment Advisors

The P/E Might Well Prove Mightier than the Pessimism

The price earnings ratio, known as the p/e ratio for short, is a useful way to evaluate the attractiveness of a company's stock price compared to its current earnings per share. If a company is reporting earnings per share of $2, and the stock is selling for $20 per share, the p/e ratio is 10. “One potential way to know when a sector or industry is overpriced is when the average p/e ratio of all of the companies in that [...]