'Standard and Poor’s (S&P)' is explained in detail and with examples in the Corporate Finance edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.
Standard and Poor’s is a global ratings agency that is also responsible for the S&P and Dow Jones indices in the stock market. Besides providing ratings on companies and products, they also rate governments’ sovereign credit ratings. This company is based in the United States but has 26 offices throughout the globe. The corporation has shortened its name from Standard and Poor’s Ratings Services to S&P Global Rating as of April 28, 2016.
The history of Standard and Poor’s goes back over 150 years. Today they provide market intelligence that is high quality and well respected. They offer this in the form of their well known credit ratings, global research, and thought leadership. The company operates primarily as S&P Global Market Intelligence and S&P Dow Jones Indices.
Their division S&P Global Market Intelligence proves to be among the world leaders in delivering research and information on a variety of asset classes. They provide this with thought provoking analysis via a number of advanced platforms. Every year the company gathers more than 135 billions individual points of data in the pursuit of this goal. They cover 99% of all the market capitalization in the world. Standard and Poor’s wants to be more than just the provider of financial data and intelligence. They are looking to be a creative force for transparency, growth, and the provision of value in the world’s capital markets.
Each day this division of the company gathers, scrubs, analyzes, and interprets enormous amounts of data and content. They take this raw information and transform it to intelligence investors can act on covering industries and companies in the worldwide financial markets. Standard and Poor’s Global Market Intelligence offers not only data but also valuable insight that helps readers to make more educated and intelligent investment and business decisions that impact the future.
This division boasts several core beliefs. These are relevance, accuracy, timeliness, and completeness. The group proves to be a foremost purveyor of analytics, news, research, and information to a variety of groups around the globe. Beneficiaries of this information include corporations, government agencies, universities, and professionals.
The solutions and data which lead the industry come from their subsidiaries SNL Financial and S&P Capital IQ. These combine to put together data from individual sectors and the comprehensive market with news and analytics. The tools that result allow the group’s clients to perform a wide variety of functions. They can track their performance, identify ideas for investments, generate alpha, grasp dynamics of the competition in an industry, determine credit risks, and produce valuations.
This division boasts over 10,000 employees operating in 20 countries around the globe.
The other principal division of Standard and Poor’s is the S&P Dow Jones Indices. This group turns out to be the biggest international source for concepts, research, and data on indices. It counts among its legendary financial indicators the Dow Jones Industrial Average and the S&P 500 indices. It has been working with these indicators for more than 120 years to create forward thinking market solutions which help to meet needs of both retail and institutional investors.
They began with launching the Dow Jones Industrial Average in 1896 and later produced the S&P 500 in 1957. This has made them an engine in many of the most critical financial creations of the 20th century. They now offer in excess of 1 million different indices that run the spectrum of many different asset classes throughout the world. The company claims that more assets have been invested in different products that are based on their indices than with any other company on earth.