How do you explain difference between S&P index and SPY ?

[crgarcia]

Quote from fluttrader:

When I go to yahoo and compare charts of the 2, they don't match ?!

http://finance.yahoo.com/q/bc?t=1d&s=^GSPC&l=on&z=l&q=l&c=spy

SPY is an approximation of the S&P index.
It could never be exact for two main reasons:

1. The S&P has many decimal places in their composing stocks proportions, so it would require billions, or even trillions to get have the stock in exact proportions.

2. The index is always changing (by some small amounts), because the index is capitalization weighted, if some stock increases in price, its proportion also increases.

 

[newguy05]

All you need to know is spx is 10x spy price generally speaking, each has its own bid/ask and market. Spy options have a much narrower bid/ask gap which is more friendly to retail traders.

that's it, you dont need to know all the other details to trade. Unless you writing a college paper or something....

ps allenhobbs, you are an asshole

 

[Eliot Hosewater]

Quote from allenhobbs:

Get off your lazy ass and figured it out. What's with these noob traders who want every little thing fed to them on a silver platter with a platinum spoon? My God, you've got one of the greatest all time sources of information at your fingertips--the Internet--and you want someone to do the work for you?

You'll never have a chance of making it in this business if you don't put in the effort.

I guess you don't know either.

What a stunningly idiotic answer.

 

[stock_trad3r]

Answer:

SPY PAYS A DIVIDEND

 

[matador04]

Check out tax treatment on the options...SPX > SPY on that metric

 

[fluttrader]

Quote from stock_trad3r:

Answer:

SPY PAYS A DIVIDEND

That's the correct, VERY simple answer.

THANK YOU, ELITEtrader,stock_trad3r !

(that's the difference between the classy traders and the trolls ,jerks)

 

[fluttrader]

Quote from Eliot Hosewater:

I guess you don't know either.

What a stunningly idiotic answer.

Hey watch out, this guy is an ex-CFO of a LARGE company aged over 40 years !(does he sound mature,boy! ...)

A little tip for Allanhobbs : instead of trying to take 5K to 250K , why not start with 250K (you have that kind of money somewhere in the corner of your BIG house since you are a ex-CFO,no ?) and make a more realistic 100% in a year to make the SAME amount of money ?