What is a stock exchange?

Stock exchanges are particular networks within the broader stock market where stockbrokers meet. Exchanges provide companies with the opportunity to grow and flourish in their respective countries.

How does the stock market work?

Every stock exchange writes its own rules for corporations that want to trade their stock there. These rules can include how long the company has existed, how many shares are held publicly, and how much net income the company reports. Because the Nasdaq is open to listing smaller, newer companies than the NYSE, most U.S. IPOs are launched there. At the same time, each exchange must follow rules set by a larger governing body—in the United States, that would be the Securities and Exchange Commission (SEC).

When is the stock market open?

In the United States, most stock markets are open from 9:30 a.m. to 4 p.m. Eastern Time; in London 8 a.m. to 4:30 p.m. local time; in Tokyo 9 a.m. to 11:30 a.m. and 12:30 p.m. to 3 p.m. local time.

Dow, Nasdaq, S&P 500: What does it all mean?

If you've ever listened to the financial news, you know that the Dow, the S&P and the Nasdaq go for a ride every day. They're market indices, and while it's obvious that many people pay attention to them, it may not be so obvious why they do. Simply put, a market index lumps a bunch of stocks together into a weighted average. Each index uses a different methodology to choose and weigh stocks, but the general idea is that over time the index's performance serves up a quick overview of the market. Knowing each index's quirks can help you get better at filtering and interpreting the information they offer you. That means you'll be better at putting what you learn into action. The three indices used most in the U.S. are the Nasdaq Composite Index, the Dow Jones Industrial Average and the S&P 500 Index.

Dividends are cash or stock rewards paid to investors, usually out of company profits. You can almost think of it as a gift, meaning companies are under no obligation to hand out dividends, and most don't.

Smart Investing

Financial Educational Resource Hub

Smart Investing

Whether you're just starting out or looking to brush up on your investing skills, we'll help you make smarter decisions about saving, investing and protecting your money.

Why Start Investing?

Starting to invest is a smart move because it offers the potential for your money to grow over time. It’s a way to build wealth, beat inflation and work towards your financial goals. Our Financial Education Hub provides valuable resources to help you improve your financial literacy and make more informed investment decisions.

Why Is Investing Important?

Whether you are concerned about retirement or want to build wealth for another reason, there are several arguments for investing. Here are some of them.

: Whether you are concerned about retirement or want to build wealth for another reason, there are several arguments for investing. Here are some of them.

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How to Start Investing

There are 4 Actionable Steps to Get Started:

Define Your Investment Goals

What do you want your money to do for you? Clearly defining your investment endgame lays the foundation for how you will be investing.

Decide on Your Investing Strategy

Your investment strategy is comprised of 3 main components: Your investing approach, your investing style and your investment mix.

Set up Investment Accounts

Open up the appropriate investment accounts. There are many different types of investment accounts that you can leverage in order to minimize your tax bill down the road.

Rebalance and Adjust as Necessary

Over time, your desired investment allocations (and your risk profile) can change due to the under/over performance of the assets in your portfolio.

What to Invest In?

Understanding the different types of investment vehicles

: Stocks

A stock is a piece of a company. Even if you own just one share of stock, you are a shareholder and you own part of that company. Of all investment types, stocks carry some of the best potential for long-term returns, however, stocks are also riskier than other investments.

Bonds

A bond is a loan to a company or government. So "buying" a bond means you're loaning your money. Why would you do that? For the same reason a bank gives you a mortgage: to make money on the interest.

ETFs

Exchange-traded fund (ETF) is a basket of stocks that itself trades on stock exchanges. That means it trades just like individual company stocks, but you don't have to shell out a month's pay to get in the game.

Mutual Fund

This is a hugely popular investment vehicle that owns a bunch of assets. Those can be stocks, bonds, commodities, cash—even other mutual funds. So, when you buy shares in a mutual fund, you indirectly own shares in its underlying assets.

Cryptocurrency

Cryptocurrency is digital money that doesn't require a bank or financial institution to verify transactions and can be used for purchases or as an investment.

Commodities

Commodities are essential raw materials that power our daily lives. They encompass a broad range of goods, from agricultural products like wheat and coffee to industrial materials such as oil and gold.

Investing 101

: Stock exchanges are particular networks within the broader stock market where stockbrokers meet. Exchanges provide companies with the opportunity to grow and flourish in their respective countries.

Learn more
: Every stock exchange writes its own rules for corporations that want to trade their stock there. These rules can include how long the company has existed, how many shares are held publicly, and how much net income the company reports. Because the Nasdaq is open to listing smaller, newer companies than the NYSE, most U.S. IPOs are launched there. At the same time, each exchange must follow rules set by a larger governing body—in the United States, that would be the Securities and Exchange Commission (SEC).

Learn more
: In the United States, most stock markets are open from 9:30 a.m. to 4 p.m. Eastern Time; in London 8 a.m. to 4:30 p.m. local time; in Tokyo 9 a.m. to 11:30 a.m. and 12:30 p.m. to 3 p.m. local time.

Learn more
: If you've ever listened to the financial news, you know that the Dow, the S&P and the Nasdaq go for a ride every day. They're market indices, and while it's obvious that many people pay attention to them, it may not be so obvious why they do.

Simply put, a market index lumps a bunch of stocks together into a weighted average. Each index uses a different methodology to choose and weigh stocks, but the general idea is that over time the index's performance serves up a quick overview of the market. Knowing each index's quirks can help you get better at filtering and interpreting the information they offer you. That means you'll be better at putting what you learn into action.

The three indices used most in the U.S. are the Nasdaq Composite Index, the Dow Jones Industrial Average and the S&P 500 Index.

Learn more
: Dividends are cash or stock rewards paid to investors, usually out of company profits. You can almost think of it as a gift, meaning companies are under no obligation to hand out dividends, and most don't.

Learn more

Visualizing the Stock Market

Indexes Chart

Buying Stocks 101

Analysis can take some of the mystery out of investing in stocks.

Is This Stock Worth Buying?

Learn

To buy a stock, you need to use a stock trade order.

What Is A Stock Order?

Read to learn more about the different types of stock orders and their uses.

Learn

All About Bonds

How do you actually buy bonds, and what do you look for?

A Primer on Buying Bonds

We walk you through that process here.

Learn

Bonds are all about interest rates, and a rising interest rate isn't always a good thing for bonds.

The Interest-ing Thing About Bonds

Learn

Personal Finance Basics for Investors

Learn more about budgeting, saving, and other things important for financial stability.

Retirement

Learn how to start saving for retirement now using the 401(k) plan, an employer sponsored plan with a lot of advantages.

How to Save for Retirement in the US: The 401(k) Plan ->

Yes, You Should Invest for Retirement Now (US) ->

: Learn how to start saving for retirement now using the 401(k) plan, an employer sponsored plan with a lot of advantages.

How to Save for Retirement in the US: The 401(k) Plan ->

Yes, You Should Invest for Retirement Now (US) ->

Taxes

Taxes are mandatory fees, so learn more about what they are and how to file for them here.

What Are Taxes? ->

: Taxes are mandatory fees, so learn more about what they are and how to file for them here.

What Are Taxes? ->

Savings

Learn why savings are important to financial wellbeing, different reasons why you would save, and how to start saving!

Why, When, and How to Save? ->

: Learn why savings are important to financial wellbeing, different reasons why you would save, and how to start saving!

Why, When, and How to Save? ->

Budgeting

Budgeting is an important skill to develop for anyone looking to have a better handle on their financial success.

Budgeting 101: How to Plan for Financial Success ->

: Budgeting is an important skill to develop for anyone looking to have a better handle on their financial success.

Budgeting 101: How to Plan for Financial Success ->

Planning for Life’s Financial Curveballs

Life can be unpredictable. We examine how to create an investment strategy for surviving all of life’s curveballs, including how to handle losing a job to becoming a caregiver to surviving the death of a spouse.

Learn more

Investing Strategies: Guide for Beginners

Learn about a few beginner-friendly investment strategies.

Investment Strategies To Learn

Here are strategies you should consider before you begin.

: How To Be a Value Investor

We explore the benefits of being a value investor, and how to find success using this method.

Small-Cap Value Stock Investing

Small-cap value stocks have been one of the top-performing style and size categories in U.S. stocks over the long-term.

Stock Investing Using Momentum

We explore momentum and how investors can use it in their strategy.

Growth Investing with a Value Twist

Growth and value investing intersect with an approach called growth-at-a-reasonable price investing (GARP).

Investing in the Dividend Aristocrats

The Dividend Aristocrats are a select group of companies that have been increasing their dividends for over 25 years.

High Shareholder Yield Stocks

Shareholder yield goes beyond dividend yield and captures all the different ways a company can return cash to shareholders.

High Quality Stock Investing

Many investors favor high quality businesses. We explore what high quality investing is and how to spot quality when you see it.

Wide Moat Stock Investing

Finding companies with wide moats around their businesses and competitive advantages can lead to great long-term returns.

Low Volatility Stock Investing

Investing in low volatility stocks may help improve your risk-adjusted returns.

An Overview of Factor Investing

Factor investing involves buying stocks with certain characteristics, including value, momentum, size, low volatility and quality in an attempt to find winning stocks.

Compound Interest Calculator

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