Financial Terms “S”


S&P 500

The S&P 500 is a U.S. stock market index composed of the 500 largest U.S. companies. The S&P 500 is the proxy for the U.S. large-cap stock market.

There are many S&P 500 index funds that use the S&P 500 index as their benchmark. The S&P 500 is the most common benchmark for both the U.S. large-cap market and the U.S. stock market.

See the current quote for the S&P 500 index here.

S&P 500 Index Fund

An S&P 500 index fund is an index fund that tracks the S&P 500. These funds buy and hold the stocks in the S&P 500. Popular S&P 500 index funds include:

  • Vanguard 500 Index Fund Admiral Shares (VFIAX)
  • Fidelity 500 Index Fund (FXAIX)
  • Schwab S&P 500 Index Fund (SWPPX)

Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is a federal agency that administers the Securities Exchange Act of 1934 and regulates the financial markets. Companies that issue securities to the public or are listed on an exchange are required to file audited financial statements with the SEC. In addition, the SEC has broad powers to prescribe the accounting practices and standards in the U.S. 

Simple interest

Simple interest is interest that accrues on only the principal and not the accrued interest. Simple interest always grows slower than compound interest. Simple interest = principal x rate x time. Compound interest earns interest on both principal and the previous interest.

Simple Interest Formula

Statement of cash flows

See cash flow statement.

SWOT analysis

SWOT analysis or SWOT matrix is a strategic exercise to analyze an organization’s competition. SWOT helps a company identify its competitive advantage.

SWOT stands for the four areas of the matrix:

  1. strengths
  2. weaknesses
  3. opportunities
  4. threats

Financial Terms Dictionary

Jeff Mankin

Jeff Mankin teaches financial literacy. His website is

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