How is investing different from putting money in a savings account?
Saving is putting money away in a safe location, commonly a savings account, for use at a later time. Savings accounts are great ways to put your money away in a safe place for future needs. However, savings accounts have their limits. Most savings accounts pay very low interest rates, which means that the money you put in a savings account isn’t growing much. It might grow a little, but savings accounts are a way to keep your money safe, not a way to make your money grow.
Investing is participating in the market to buy and sell securities (for example: stocks, bonds, ETFs) in order to potentially make returns and earn dividends. There is more risk with investing than with saving, but the potential for rewards is also higher. Investing is more complex than saving (regulations, tax implications, etc), which is why Stash is simplifying the process.
Q. Is my money safe?
Encryption When you use Stash, your information is encrypted and stored on secure servers. Custodial holding Your funds and securities are held by our custody and clearing partner, Apex Clearing Corporation. At Apex, your investments are protected up to a maximum of $500,000 total, including $250,000 in cash balances through the Securities Investor Protection Corporation…
Q. Will Stash tell me when to sell my stock shares?
You will be able to sell your shares of stock in the same way that you sell shares of an ETF today. For guidance on how to judge the performance of a company, we recommend that you consult all available resources on learn.stashinvest.com.
Q. What happens to my shares if a stock splits?
A stock split is similar to taking a $100 bill and splitting it into two $50 bills (or five $20 bills). The number of bills you hold increases, but the overall value of your money remains the same. If a stock that you own splits, the number of shares of stock on the market (or…
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