Q. What is an ETF?
ETF stands for exchange-traded fund. ETFs are a basket of investments (for example: stocks and bonds) bundled into a fund that’s traded on an exchange. That fund owns the underlying assets (i.e. stocks, bonds, or cash) and generally tracks an index – or group of investments that represent part of the market.
Q. Why should I invest?
Investing is a great way to make your money work for you. Keeping your money out of the market can mean a loss of thousands of dollars of growth and dividends over the course of your money-earning life. The sooner you start investing, the greater your chance of benefiting from compounding. Let’s say you invested…
Q. What is a dividend?
A dividend is a distribution of a company’s earnings, a divvying up. Say you own shares of Coca-Cola, and Coca-Cola makes some profit. If those shares pay dividends (not all do), you get a certain amount of the profit the company distributes to its shareholders. That amount is determined by how many shares you have.…
Q. How often do I earn dividends?
Dividends are distributed depending on the schedules of each individual fund. Please visit the individual investment websites to see the dividends distribution schedule. These can normally be found by clicking on Distributions in any of the fund websites.
Q. What is a custodial account?
A custodial account allows a parent (or grandparent, other family member, or friend) to open a savings/investing account for a minor*. Until the minor reaches the “age of majority” (usually 18 or 21 depending on the State), only the adult or ‘Custodian’ who opened the account can manage the funds. Think of the age of…
Q. What is investing?
You can invest in many ways; with your time, your energy, your attention. In the Stash context, we’re talking about money. When you invest on Stash, you’re buying portions of funds with an expectation of earning a return by participating in the the buying and selling of financial instruments (e.g., stocks and bonds) on an…
Q. I’m losing money in one of my investments. Should I sell and invest in something else?
Long-term investing can be nerve-wracking at first. You may see an investment lose value and be tempted to sell. Ultimately, when you sell your investments is up to you. However, we recommend holding investments for the long-term and learning more about dollar-cost averaging and volatility. An investment that is down today may be up tomorrow,…
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