Things You Must Know About Stocks


What Is a Ticker Symbol?

A ticker symbol is a short abbreviation used by the financial markets to identify a security such as a stock. For instance, ticker symbol of General Electric is GE, Wells Fargo is WFC, Apple is APPL and Coca-Cola is KO.

What Does the Board of Directors Do?

The Board of Directors is a bunch of people elected by the stockholders or the investors, to represent their interest. The board is responsible for hiring a CEO, evaluating the stock performance and determining dividends etc.

What Is a Dividend?

When a company makes a profit, sometimes it returns some of the money to its stockholders, which is known as a dividend. For example, if the Board of Directors votes to pay 100 cash dividend per share and you owned 1,000 shares, you would get a check for 1,00,000 from the company.

What Is Dividend Yield?

Dividend yield notifies an investor that how much he should collect in cash dividends relative to how much he has invest in a stock. It lets an investor compare a stock to a bond or CD.