Dividends are payments made by a corporation to its shareholders

There are monthly dividend ETFs that pay you to hold them

Traditional dividend stocks and funds pay out quarterly, or four times a year. A select group of stocks and funds pay out monthly, putting cash in investors’ hands 12 times a year. These monthly dividend funds are popular because their regular payouts can help keep budgets on track.

Reinvested dividends are not a way to dodge paying capital gains taxes

When an investor holds stock in a company that pays a dividend—a portion of its profits directly returned to shareholders as monthly or quarterly payments—they can choose to hold that dividend in cash, spend it, or reinvest it into more shares of that company’s stock.

S&P 500 stocks that have increased their dividends for 25 consecutive years are called 'dividend aristocrats'

Dividend aristocrats are considered the best of the best on the S&P 500—all with market capitalizations above $3B, more than $5M in daily trading volume, and consecutive dividend growth for a minimum of 25 years. Some examples of dividend aristocrats are Coca-Cola, Procter & Gamble, and Walmart.

The origin and history of stock exchanges

When were stocks first sold? Though debt was first sold in Venice in the 14th century, stocks proper began in the Netherlands. To fund its spice trade across the world in 1602, the Dutch East India Company sold stocks to individual investors, a novel approach to raising funds. It was the Dutch West India Company that founded New York—the site of some of the world’s greatest stock exchanges. Listen to a concise historical overview here.

The first-ever IPO was issued by the Dutch East India Co., a spice company.

It first offered shares to the public in the 1600s on the Amsterdam Stock Exchange to help finance its passages. The Dutch East India Co. succeeded in part due to its monopolistic hold over the East Indies at the time.

The world’s first publicly traded company was the United East India Co.

In an effort to best Spain and gain access to valuable trade in Asia, the Dutch Republic launched the VOC, or the United East India Co. The company held an initial public offering in 1602, allowing “subscribers” to choose how much they wanted to invest in the new venture. It was open to all residents of the republic, making this the first opportunity for retail investors in the world.

The Dow Divisor keeps the index consistent through time

To adjust for stock splits, mergers, and replacements, the DJIA uses a figure called the Dow Divisor. Originally valued around 12 in 1896, and now less than one, it ensures today’s index levels remain comparable with the past.

Shares are parts of a stock that represent ownership of a company

Shares are traded on the stock market. Once you buy a single share of a company, you are considered a shareholder of that company and may have certain rights as a partial owner, such as voting on business decisions.

The world's oldest stock exchange was called the Amsterdam Stock Exchange

What is now referred to as Euronext Amsterdam got its start centuries ago, in the early 1600s. Back then, it was called the Amsterdam Stock Exchange—and it might not have existed without the Dutch East India Co.'s desire to raise funding for its seafaring ventures.

Companies sometimes issue corporate bonds to raise capital

These bonds offer investors regular interest payments in addition to the return of the principal amount at maturity. They allow companies to raise capital without losing ownership.

How ancient Romans invested and worked

The first stock exchange didn't open for business until the early 1600s, but that didn't stop the Ancient Romans from working and investing their money centuries before. While Romans are better known for their political inventions than their economic ones, understanding how they viewed money can help paint a better picture of the Roman mindset that created systems like democracy. Read this article to learn more.

A stock market timeline

The stock market has come a long way since the 1600s, when the first version of a stock exchange was created in Amsterdam. Mile markers along the way include everything from the Dow Jones Industrial Average's creation in 1896 to the stock market woes during the COVID-19 pandemic in 2020.

Compounding, explained

During conversations about personal finance, the term "compounding" gets thrown around—but not everyone understands how compound interest and compound returns work. Broadly speaking, compounding is what happens when you not only earn returns or interest on your original investment, but also on the accumulated returns or interest you receive over time. This article explains how both of these processes function, and what compounding could mean for your wallet.

Student protests over endowments

College students across the country are urging their universities to divest from a range of companies—some tied to business in Israel, others linked to climate change. But what does “divestment” actually mean when it comes to billion-dollar endowments? In this episode of Planet Money, the hosts break down how endowment divestment works, and why its impact might not be as straightforward as protesters hope.

Companies often use different share classes, like Class A or Class B, to structure ownership

Share classes refer to specific types of company stock that are distinguished by the rights they grant, such as voting power and dividend access.

A history of stock exchanges, from Venitain merchants to modern day

While the idea of stock exchanges—markets where securities can be bought and sold—is mostly synonymous with Wall Street, the New York Stock Exchange, and other modern markets, places to buy and sell financial instruments have a long history....

A direct listing is when a company goes public, listing shares on a stock exchange

A direct listing is when a company goes public, listing its shares on a stock exchange, rather than issuing new shares or raising capital. That means investment banks—traditionally serving as intermediaries—could lose out on some of the profits from these deals as more companies like Spotify opt for direct listings.

See every company in and out of the Dow since 1928

The index has had 30 companies since 1928. See each company’s tenure on the index and what firms were added or replaced by year and industry.

Amazon sends its first-ever letter to shareholders every year

The first letter to Amazon’s shareholders, written by founder and then-CEO Jeff Bezos in 1997, is a key part of the Amazon story—laying out the company’s long-term approach to the business and several of its core operating values. Bezos emphasizes, for example, Amazon’s plan to start with a bookstore but to evolve into a much larger ecosystem.

Different types of endowments, explained

​This Investopedia article provides a comprehensive overview of financial endowments—donations made to nonprofit institutions like universities, museums, or hospitals. It explains how endowments are structured, the various types (such as restricted and quasi-endowments), and how they are managed to support an institution's mission over time.

Watch this video to learn how to read a company's earnings report, the documents that reveal key details about a public company's recent financial performance.

How one man placed the first short against the Dutch East India Company

Isaac Le Maire, a Dutch businessman and cofounder of the Dutch East India Company, is said to be history's first short seller, betting against the Dutch East India Company's stock price. Le Maire, who had been fired from the spice trading company over an unclear financial dispute, began spreading false rumours about the company to encourage people to sell their stock in order to tank its value.

Companies go public via an initial public offering (IPO) to raise large amounts of capital, helping them expand, invest in new ventures, hire more staff, or pay off debts.

Dual-class stock structures separate equity and decision-making authority

In the past few decades, dual-class stock structures have become an increasingly popular way for companies to raise capital in public markets without allocating traditional shareholder voting rights. Meta, Estée Lauder, and The New York Times are companies that are famously dual-class.

'Payment in kind' is a compensation method that uses alternatives to cash

Companies can make payments using goods, services, or additional securities instead of cash, helping companies preserve their cash flow. Public BDCs receive roughly 8% of their investment income via PIK.

Even iconic companies can get dropped from the Dow

The Dow’s lineup evolves as the economy changes. General Electric, part of the original 1896 index, was removed in 2018, after 122 years. ExxonMobil, once the world’s largest company, was replaced by Salesforce in 2020.

The stock market, explained in 3 minutes

The stock market consists of a set of exchanges and other venues where shares of public companies are bought and sold. The Nasdaq and the New York Stock Exchange are two of the most well-known exchanges in the US, while major exchanges also operate around the world, including in Tokyo, Shanghai, London, and São Paulo.

Mutual funds invest in multiple different companies with money from many investors, while an individual stock represents ownership in a single company and is bought by individual investors.

ETFs were first created as an alternative to mutual funds, combining the diversification benefits of a mutual fund with the ability to trade throughout the day on a stock exchange.

Why does the stock market matter?

Open any newspaper, turn on your local TV news station, or listen to a daily business radio segment, and you’re bound to hear about how the stock market is performing. Netflix created a 17-minute (free) explainer that dives deep into the nitty-gritty of how we got here.

ETFs and mutual funds are both taxed on capital gains and on dividends.

The Dow Jones & Company began as a small news service in 1882

Founded in 1882 by Charles Dow, Edward Jones and Charles Bergstresser, Dow Jones & Company started with hand-delivered market bulletins. Today it’s a global financial news giant, best known for publishing The Wall Street Journal.

The Dow Jones Industrial Average was created in 1896

Charles Dow introduced the DJIA on May 26, 1896, as a simple average of 12 industrial stocks. Although it became the nation’s most enduring market index, none of its original companies remain in the Dow today.

The Dow remains a shorthand for America’s economic health

For over a century, the Dow Jones Industrial Average has been one of the most closely watched market barometers. Its rises and falls dominate headlines and politics, shaping how Americans perceive the strength of their economy.

American CEOs are so wealthy in part because of stock buybacks, the process of a company purchasing shares of its own stock.

The difference between stocks and bonds

While more people invest in stocks than bonds, experts say owning both can make for a healthier portfolio. Stocks are considered a riskier investment than bonds, but tend to have higher returns. While bonds might be the safer option, they won’t grow your wealth as quickly.

40 key stock market terms, explained

Liquidity. Forex. Capitalization. Blue chip stocks. These are just a few pieces of stock market vocabulary most people who don't spend all day on a trading floor might not know. Thankfully, we found a fun infographic that makes it easier to learn what 40 key stock market terms mean and why each of them matters.

Earnings season—the time period at the end of each quarter when many public companies release their earnings reports—offers a chance for investors and Wall Street analysts to evaluate how a wide range of companies are performing at once.

A parent explains 529 plans and why they decided to start one

The parent explains the basics of what a 529 is, its advantages, and how it works, breaking down portfolio options for investing in 529 plans using Vanguard as a provider.

What's the difference between a stock and a share?

While the words "stock" and "share" are often used interchangeably in casual conversation, they have different meanings. For instance, "stock" is more general, whereas "share" is more precise.

See an original Diner’s Club charge card

Before credit cards, there were charge cards from companies like Diner’s Club. While credit cards allow cardholders to carry a balance from month to month (potentially accruing interest), charge cards like Diner’s Club cards had to be paid off right away.

'The stock market' can be loosely defined as a set of exchanges and other places where shares of public companies are bought and sold.

What are college endowments? An expert explains

College endowments are meant to last forever. That's why some of the oldest, most prestigious schools in the US have lasted so long. A higher education finance expert weighs in on how these funds work and offers fascinating tidbits on how they impact university finances.

Some private credit funds trade on the stock market

These funds, which trade at market prices, are called "public BDCs," which stands for "business development companies." For instance, the global alternative investment manager Ares Management Corp. has a public BDC.

The Dow now tracks 30 major US companies across various industries

Since 1928, the DJIA has included 30 firms. Today's group spans technology, healthcare, and finance—with Apple, Microsoft, JPMorgan Chase, Pfizer, and Coca-Cola among its most recognized components.

'Buying the dip' refers to purchasing stocks or ETFs after a price decline in anticipation of a rebound

Some investors see it as getting a discount before the market recovers and the temporary declines turn into gains.

Startup founders’ equity becomes diluted as they bring in more investors

When an angel investor funds a company in exchange for equity, startups issue new shares to them, rather than giving them existing shares, and boost the company’s valuation.

The S&P 500 yields a roughly 10.5% average annual return

Tthe factors that go into that calculation are multifaceted—from how inflation impacts it to the stocks themselves. During periods of high inflation, stock performance can be stunted by investor concerns, for instance. The average return also varies based on whether dividends are included.

The Dow’s price-weighted formula makes stock price matter more than size

Unlike most indices, which weigh companies by market value, the DJIA is price-weighted—meaning higher-priced stocks have more influence on its movements. As a result, a company’s share price matters more than its overall size.

Certificates of deposit are investment vehicles that earn interest on a fixed sum of money over a set term

CDs come in varying term lengths, from three- or six-month commitments to decadelong terms. Typically, the longer the term, the higher the interest rate.