Stocks & Indexes, 5 S-WHY
A stock represents partial ownership of a company, and a stock index tracks a basket of stocks of different companies. Learn the ins and outs of the stock market, the 11 sectors within it, and the various indexes that measure its overall performance.
Stocks & Indexes Encyclopedia Articles By Title
5 sports betting companies you can invest in
Intrigued by sports betting, but you donât like playing the oddsâand you recognize that, over time, the house has......
Activist investors: Who they are, what they do, and how they do it
What happens when an investor takes an active role in steering the direction of a publicly traded company? Activist......
Bull and bear markets: What to know about each
Stock market fluctuations are common, as so-called bull markets donât run forever and so-called bear markets eventually......
Communication services sector: Investing in companies that entertain and inform
Telecommunications have become the mainstay for how we connect, communicate, and entertain. Whether itâs via a......
Consumer discretionary sector: Investing in companies that make life a bit sweeter
You have material needs in lifeâand also desires and wants. Companies in the consumer discretionary sector of the......
Consumer staples sector: Investing in stocks that provide the basics for living
Some things you just canât live without. Consumer staples are products that are essential or that youâre likely......
Defensive and cyclical stocks: What investors should know
Youâve probably noticed that at every turn of the economic cycle, active money managers tend to shift their investment......
Energy sector: Investing in stocks that fuel the economy
Energy powers our world, but the energy sector itself is one of the smaller of the 11 Global Industry Classification......
Financial services sector: Investing in stocks with a fiscal focus
Think of the stock marketâs financial services sector as a massive skyscraper in which all monetary transactions......
From the Nifty Fifty to the Magnificent Seven: How all-star stocks are picked
All-stars, MVPs, dream teamsâwhatever you call them, everyone seems enamored by the âbest of the bestâ (of something).......
Get your portfolioâs passport stamped: Reasons to consider international investing
Investing in foreign companies and markets is a common way to build some diversification into your portfolio. It......
Health care sector: Investing in stocks that help keep you well
âHealth is wealth,â as the old saying goes, and if you value your mental and physical well-being, that likely rings......
How to spot and invest in a unicorn company
What do Google (in the 1990s) and Grammarly have in common with Quibi and Jawbone? All four were valued at more......
Hyperscale data centers: Reshaping cloud computing and powering AI
Tech industry insiders have been talking about hyperscale data centers (âhyperscalersâ) since the early 2010s,......
Industrials sector: Investing in big companies that do big things
When envisioning the pillars of American industry, numerous products and services come to mind: heavy machinery......
Investing in chip stocks: What are semiconductors?
From the oldest calculator lying forgotten in your junk drawer, to the most advanced artificial intelligence (AI)......
Investing in tech sector stocks: A beginnerâs guide
The information technology (IT) sector is perhaps the most expansive and progressive of the 11 Global Industry......
Is a dividend investing strategy right for you?
Dividend stocksâshares of companies that prioritize those periodic payments to shareholdersâare a way to attract......
Let your cash DRIP into more shares: A guide to dividend reinvestment
When selecting stocks for your portfolio, do you concentrate on high-potential companies that seek high growth......
Market capitalization: Its impact on stocks and your investing strategy
A companyâs market capitalizationâor total outstanding share valueâmight not seem important when you buy the smartphone,......
Market volatility: Identifying and quantifying investment risks
When the going is goodâlots of good news, strong economic growth, healthy investment portfoliosâinvestors tend......
Real estate sector: Investing in stocks to keep you grounded
Thereâs an old saying that goes, âBuy land, theyâre not making it anymore.â But purchasing real estate often requires......
Slicing the market pie: How stock splits work and why they matter
If youâre just learning about stock splits, you may have heard some variation of the pizza analogy. It goes like......
SpaceX and the IPO moment
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on June 3, 2026.......
Stock buybacks: The strategy behind share repurchases
When a company is sitting on excess cash, it has several choices besides keeping the money on ice. It can pay down......
Stock dividends: Seem like free money, but itâs a bit more complicated
A stock dividend is a regular payment you receive simply for owning shares of a certain company. In a way, itâs......
Stock index funds: Simplicity and lower fees, but youâre tied to index performance
The financial industry tracks stock indexes as a simple way to chart specific markets. But how can investors position......
Stock investment risk: Understanding systematic and idiosyncratic risks
Companies like to highlight their growth prospects. So do the analysts who tout their shares. But when it comes......
Stock market basics: Earnings and other key drivers of share prices
When you buy a share of stock, youâre essentially purchasing a partial ownership stake in a company. You get a......
Stock market indexes: Tracking Wall Street in real time and long term
Stock market indexes bundle hundreds or even thousands of stocks based on various parameters and compute their......
Stock sector performance and a sector investing example
Stock sector performance, like the market itself, isnât monolithic. Sectors rise and fall based on industry fundamentals......
The battle for Warner Bros. Discovery: How Paramount prevailed
Paramount Skydance prevailed in its bid for Warner Bros. Discovery after Warnerâs board of directors determined......
The grand IPO rollout: Form S-1 and the transition from private to public
Apple. Microsoft. IBM. Amazon. The legends of American business are pretty much all publicly traded companiesâand......
Utilities sector: Investing in basic services that make life better
When you lift the handle on a faucet, flip on a light switch, or set your homeâs thermostat, you expect water to......
Video streaming services: Whoâs who and whatâs next?
The proliferation of streaming services has left many consumers scratching their heads, wondering just which ones......
Want to be an activist investor? As a shareholder, start with proxy voting
Want to have a say in how a public company is managed? If youâre a shareholder, vote by proxy. Proxy voting is......
What is preferred stock, and how does it differ from common stock?
Preferred stock is a type of security that can grant special benefits to its holders. Preferred shares also have......
Why emerging markets might be worth owning in a diversified portfolio
Emerging market (EM) shares could give your portfolio a long-term tailwind, providing exposure to companies in......