S&P/TSX Composite Index

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DEFINITION of 'S&P/TSX Composite Index'

The Canadian equivalent to the S&P 500 market index in the United States. The S&P/TSX Composite Index contains stocks of the largest companies on the Toronto Stock Exchange (TSX). The index is calculated by Standard and Poor's, and contains both common stock and income trust units. Additions to the index are generally based on quarterly reviews.

BREAKING DOWN 'S&P/TSX Composite Index'

The Toronto Stock Exchange is dominated by a lot of commodity stocks, most notably crude oil, due to the concentration of natural resources in Canada. Thus, the S&P/TSX Composite Index is more correlated to the fluctuation in commodity prices than its counterparts in the U.S.

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RELATED FAQS
  1. What are the most common market indicators to follow the Canadian stock market & ...

    The key indicator for tracking the Canadian stock market is the S&P/TSX Composite Index. Economic data reports used by ... Read Full Answer >>
  2. How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock ...

    The Dow Jones Industrial Average (DJIA) is an index that tracks performance of the top 30 large companies in the United States. ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. What is the difference between shares outstanding and floating stock?

    Shares outstanding and floating stock are different measures of the shares of a particular stock. Shares outstanding is the ... Read Full Answer >>
  5. What is the difference between market risk premium and equity risk premium?

    The only meaningful difference between market-risk premium and equity-risk premium is scope. Both terms refer to the same ... Read Full Answer >>
  6. What is the difference between the QQQ ETF and other indexes?

    QQQ, previously QQQQ, is unlike indexes because it is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. The ... Read Full Answer >>

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