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What is a Dividend?
Understanding Dividends A dividend is a share of a company’s earnings given to its shareholders. Companies distribute dividends to reward those who invest in their business. For investors, dividends provide income beyond potential stock price increases. How Dividends Operate? When a company earns profits, it can: Typically, companies pay dividends on a set schedule—quarterly, semi-annually,…
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What Are Stocks?
What are Stocks? Stocks, also called shares or equities, let you own a piece of a company. When you buy a stock, you become a shareholder. Companies issue stocks to raise money for growth, research, or debt repayment. Investors buy stocks hoping their value will rise over time. How Do Stocks Work? Companies sell stocks…
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What is the Difference Between Bull and Bear Markets?
The stock market experiences cycles that can be categorized as either bull or bear markets. These terms describe opposing market trends that impact investments and economic activity. Knowing how to identify and navigate these trends is crucial for any investor. What is a Bull Market? A bull market is a period marked by rising asset…
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What is an ETF (Exchange-Traded Fund)?
What is an ETF? An Exchange-Traded Fund (ETF) is a type of investment fund that holds a collection of assets, such as stocks, bonds, or commodities. These funds trade on stock exchanges, similar to individual stocks. ETFs aim to track the performance of a specific index, sector, commodity, or asset class. For example, an ETF…
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What is an Index Fund?
What is an Index Fund? An index fund pools money from investors to buy stocks or bonds matching a specific market index. It aims to mirror the index’s performance, not outperform it. For example, an S&P 500 index fund holds shares of all 500 companies in that index. If the S&P 500 rises 10%, the…
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Difference Between Stocks and Bonds
What are Stocks and Bonds? Stocks and bonds are two common ways to invest money. Both can help grow wealth, but they work differently. Why does this distinction matter? Your choice affects your potential returns, risks, and how your investments behave over time. Ownership vs. Debt Stocks = Ownership Bonds = Debt How Returns Work…
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What is the Stock Market?
The stock market lets buyers and sellers trade ownership shares in companies. These shares are called stocks. When you own a stock, you own a small piece of that company. The stock market acts as a platform where prices are set by supply and demand. How Does it work? Companies list shares on exchanges like…
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