What is a Stock?
A stock is a type of security that represents a portion of ownership in a company. There are two main types: common stock and preferred stock.
What is the Stock Market?
Stock trading is like an auction. A stock market is a place for sellers and buyers to trade in stocks.
What are Bull and Bear Markets
Bull and bear markets are common terms among investors. A bull market indicates optimism and growth while a bear market reflects pessimism and decline.
What is Return on Investment (ROI)
ROI is a common metric for investors to evaluate profitability. It's expressed as a ratio, namely the result of investment gain relative to its cost.
What is an Investment Portfolio
An investment portfolio is about diversified investment strategies. Diversified portfolios can better weather ups and downs in the markets.
What is a SPAC?
A SPAC is similar to a mystery box, becoming a popular way to list a company. It's essential to evaluate the founding team and the target sector.
What is ESG investing?
ESG stands for environmental, social and governance, which are the three criteria for evaluating a company's sustainability performance.
What is the Dow Jones Industrial Average
The DJIA is a stock index that tracks the performance of 30 large U.S. companies, which has returned more than 7% annually on average (1896-2020).
What is an Initial Public Offering (IPO)?
IPO is a way of raising funds without a loan. An IPO is a company's transition to a publicly-traded stock.
What is the S&P 500?
The S&P 500 is a stock market index that includes 500 of the largest U.S. companies, which has returned over 12% annually on average as of Aug. 2020.
What is the Nasdaq Composite?
The Nasdaq Composite tracks nearly all of the companies that are listed on the Nasdaq stock exchange. The index comprises nearly 50% of tech stocks.
What is an Investment?
An investment is an asset bought in the hope of generating income or profits over time. Sometimes an investment may carry risks of missing expectations.
What is an Option?
An option is a contract that gives its holder the right to buy or sell a specific security on a specific time at a specific price.
What is Capital?
Capital refers to assets used by a company to create goods and services. Capital is important for company growth and wealth creation.
What is an Automatic Investment Plan
An automatic investment plan (AIP) is to invest a fixed amount of money in a fund at regular intervals.
What is a Mutual Fund?
A mutual fund is a collective investment that pools money from many investors. A mutual fund is a smart and easy way to diversify your investment.
What is an ETF?
An ETF is an exchange-traded fund that can be traded on an exchange like a stock. ETFs are a way to pool money and make investments in stocks, bonds...
What is a Dividend?
A dividend is a distribution of some company's profits to its shareholders. Matured companies are more likely to pay dividends.
What is a Stock Split?
A stock split means that a public firm splits a share into several shares. A stock split may cause the stock price to rise, but there is no guarantee.
Different Types of Mutual Funds
Mutual funds offer an easy and smart way to diversify your investment, usually in stocks, bonds, debts, and so on.