The Personal Finance Geek

When you're investing in stocks, you're buying a piece of ownership in a company. The size of the company is one factor that can affect the price of its stock. Here's a look at the differences between small-cap, mid-cap, large-cap, and mega-cap stocks: Small-cap stocks are shares of companies with a market capitalization of less than $1 billion. These companies are typically newer and have less established track records than larger companies. Small-cap stocks can be more volatile than larger stocks, but they also have the potential for higher returns. Mid-cap stocks are shares of companies with a market capitalization of between $1 billion and $10 billion. These companies are typically more established than small-cap companies, but they're still considered to be growth companies. Mid-cap stocks can be a good option for investors who are looking for a balance of risk and potential return. Large-cap stocks are shares of companies with a market capitalization of more than ...

Stock indices are some of the most common places people put their money. But what exactly are indices, and why are they such common, trusted places to invest? First, let’s establish something. You may not recognize the term “stock index,” but if you’re reading this blog, you’ve almost certainly heard of things like the Dow Jones Industrial Average or the S&P500. Those are indices. In short, indices are collections of stocks, based on some common characteristic. Here are some of the most common indices and what they have in common: Index name What lands you on the index Dow Jones Industrial Average Being one of 30 large, consistently-well-performing companies weighted by share price S&P500 Being one of the 500 biggest publicly traded companies listed on US stock exchanges weighted by market capitalization Nasdaq composite Being traded on the NASDAQ stock...

Dividends are payouts made by a company when it is doing well, to signal its strength to existing shareholders and to convince non-shareholders to become shareholders, pay out a certain proportion of their profits to their shareholders. There are a few things to know about them so that you can better understand what someone says when you're listening to a podcast or TV show about the markets. The "yield" of a stock is the amount of its price it pays out every so often. So if you have a certain stock, which you own 100 shares of, each worth $100, where each share pays you 1% every quarter, then, 4 times a year, you'll get $100, earning you $400 a year. The "ex date" is the date by which you must own shares, in order for them to be counted into the number of shares you own when the dividends payout. If in mid-May, you own 100 shares, there's an ex-date of May 25, and your next purchase is of 100 more shares, but on May 26, then, sorry! The second batch...