An Overview of Dividend Reinvestment

Two main benefits to stock ownership motivate investors: firstly, stockholders own a percentage of the company, which should theoretically increase in value as the company’s value increases. Secondly, as a partial owner of a company, stockholders have a right to...

An Overview of Stock Splits

While companies will usually do everything they can to make their stock price rise higher and higher, there is one premeditated event that is motivated by a desire to lower the stock price: the stock split. The Basic Split The classic stock split involves a company...

Types of Stocks: From Penny to Large-Cap (Part 2)

LEVEL:  BEGINNER Small Cap Stocks Small-cap stocks are the first of the three sizes of companies typically listed on exchanges, and have valuations between $300 million and $2 billion. As of the end of November 2012, 1078 companies of this size were listed on Google...

Types of Stocks: From Penny to Large-Cap (Part 1)

LEVEL:  BEGINNER There are many different types of common stocks available for investors to buy and sell both on and off exchanges like the New York Stock Exchange (NYSE) and NASDAQ. The most popular and common are the so-called large-cap stocks like IBM (IBM),...

An Overview of Dividends

LEVEL: BEGINNER One of the most compelling reasons to own stocks is the dividend. Simply put, the dividend is a payment that companies pay to shareholders just for holding stock in the company. These dividend payouts can be considered the stockholder’s share of...

An Introduction to Mergers

LEVEL:  BEGINNER Mergers and acquisitions, often shortened to just “M&A”, are significant events in a company’s history that has tremendous impact on the company’s investors. In many cases, entrepreneurs begin their companies with the hope...