STOCKS
WHAT ARE STOCKS?
A stock represents a share in the ownership of a company, including a claim on the company's earnings and assets. As such, stockholders are partial owners of the company. When the value of the business rises or falls, so does the value of the stock. Stocks are generally bought and sold electronically through stock exchanges, the two primary ones in the United States being the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASDAQ). While some companies sell
HOW STOCKS FIT WITHIN AN OVERALL INVESTMENT PORTFOLIO.
Stocks are an important part of any portfolio because of their potential for growth and higher returns versus other investment products. In order to determine how much you should allocate to stocks, you should first develop a comprehensive financial plan that reflects your investment horizon and the level of risk you're willing to accept in exchange for the potential upside stocks can offer.
Asset classes perform differently, and it's nearly impossible to predict which asset class will perform best in a given year. If you had invested $100,000 in just U.S. Stocks in 1997, it would have almost quadrupled to $400,000 by 2017, but there would have been many ups and downs due to volatility. A more diversified investment portfolio would have had a lower return, but reduced volatility.
TYPES OF STOCK
Learn about three main types of stocks.
Common stock
A stock represents a share in the ownership of a company, including a claim on the company's earnings and assets. As such, stockholders are partial owners of the company.
Fractional shares of stock also represent ownership of a company, but at a size smaller than a full share of common stock.
Preferred stock
Preferred stocks (or preferred securities) are hybrid investments that share characteristics of both stocks and bonds. They can offer higher yields than many traditional fixed income investments, but they come with different risks.
American Depositary Receipts (ADRs)
Many non-U.S. companies, that would otherwise be unavailable or inconvenient to trade, do trade in the U.S. markets as ADRs (receipts for shares of the foreign stock issued by U.S. banks). They are denominated in U.S. dollars and pay dividends in U.S. dollars.
WHY INVEST IN STOCKS WITH Expertriotrading?
$0 ONLINE EQUITY COMMISSIONS
No one is lower than Schwab among E*TRADE, Fidelity, or Vanguard
No one is lower than Schwab among E*TRADE, Fidelity, or Vanguard
INTUITIVE PLATFORMS
Trade stocks using our web, mobile, or advanced platforms.
Trade stocks using our web, mobile, or advanced platforms.
TRADING SPECIALISTS
Get real-time trade analysis and focused support from investing professionals.
Get real-time trade analysis and focused support from investing professionals.
PREMIUM RESEARCH
Sharpen your instincts with actionable stock trading research and insights from Schwab and third parties.
Sharpen your instincts with actionable stock trading research and insights from Schwab and third parties.
WHY TRADE STOCKS?
Stocks let you own a piece of a company’s future. They’re available for a wide variety of industries—so you can tap into your knowledge of specific businesses, or help you to diversify your portfolio.
Growth potential
While stock performance changes over time, successful stocks can help your money grow—at times, they can even outrun inflation
Income
Some stocks pay regular dividends—that’s income you can keep or reinvest
Flexibility
Since stocks trade by the millions every day, you can move quickly when you’re buying or selling
Control
You decide which company to invest in, when it’s time to buy, and when it’s time to sell
Fast facts
- Stop and conditional orders may help protect your portfolio
- The price-to-earning (P/E) ratio can help you identify value stocks
- Compare earnings-per-share (EPS) between similar companies.
- Market capitalization (market cap) is the dollar value of a company
- Stock performance can fluctuate depending on market conditions
TOP FIVE DIVIDEND YIELDING STOCKS
WHAT IS A DIVIDEND?
A dividend is a payment made by a corporation to its stockholders, usually out of its profits. Dividends are typically paid regularly (e.g. quarterly) and made as a fixed amount per share of stock.
THE BASICS OF STOCK SELECTION
Selecting stocks for investing and trading should not be a guessing game in today's market. Join us as we review the basics of technical analysis and other stock selection techniques you should know before buying a stock.
WHAT
WHAT TO KNOW BEFORE YOU BUY STOCKS
WHAT TO KNOW BEFORE YOU BUY STOCKS
Placing a stock trade is about a lot more than pushing a button and entering your order. This brief video can help you prepare before you open a position and develop a plan for managing it.