Investing Basics: Large-Cap Stocks
Large-cap stocks are shares of the largest U.S. companies or those with market capitalizations of $10 billion or more. Large-caps are generally safer investments than their mid- and small-cap counterparts…
What Are Mutual Funds? A Guide For New Investors
A mutual fund is an investment vehicle that owns a portfolio of assets and sells shares to investors. Financial professionals establish mutual funds, manage the assets held by the fund,…
How Do Bond Ratings Work?
Bond ratings help investors understand the risks involved in buying fixed-income securities. They are issued as letter grades by rating agencies to indicate whether bond issuers are more or less…
What Are Index Funds?
Index funds are passively managed mutual funds that try to duplicate the performance of a financial index, like the S&P 500 or the Dow Jones Industrial Average. Index funds are…
What Is The Stock Market? How Does It Work?
The stock market is a constellation of exchanges where securities like stocks and bonds are bought and sold. In the United States, “the stock market” and “Wall Street” can refer…
Certified Financial Planner: What Is A CFP?
When you search for a financial advisor, you probably come across plenty of candidates with a “CFP” designation after their names. This acronym indicates you’re looking at a certified financial…
Dow Jones Industrial Average: What Is the DJIA?
The DJIA is a stock index that tracks the share prices of 30 of the largest U.S. companies. Like the S&P 500, the DJIA is often used to describe the…
What Is The S&P 500? How Does It Work?
The S&P 500 is a stock index that tracks the share prices of 500 of the largest public companies in the United States. Formally known as the Standard & Poor’s…
How Diversification Works, And Why You Need It
Diversification is an investing strategy used to manage risk. Rather than concentrate money in a single company, industry, sector, or asset class, investors diversify their investments across various companies, industries,…
Investing Basics: What Are Dividends?
A dividend is a payment in cash or stock that public companies distribute to their shareholders. Income investors prefer to earn a steady income from dividends without needing to sell…