Stocks

What are stocks?

Stocks are a way to invest in individual companies by owning part of the company. Investing in stocks can potentially benefit you if your shares increase in price as the company performs well or if the shares of the company pay a regular dividend to provide you income. As a stockholder, you'll have part ownership in that company, and may have the ability to vote and potentially influence certain company decisions, if you hold a significant number of shares.

Read about stock order types. Download our "Stock Trading Information"

How can stocks help your financial plan?

In the U.S., stocks have consistently earned a greater return than bonds over the long term, despite many ups and downs in the stock market. While there are risks, investing in stocks can play an important role in saving for long-term goals like retirement because stocks can help your savings keep up with — or even outpace — inflation over the long haul. It is important to remember that a well-constructed financial plan assumes market downturns will happen, not that they might happen. That's why we emphasize the importance of diversification and working closely with an advisor to pinpoint your goal timelines and risk tolerance.

Who are stocks for?

Stocks are for anyone looking to invest in a specific
company or companies, anyone looking for growth or dividend income in his or her portfolio, and anyone with
a higher risk tolerance for investing in assets that
fluctuate in value and are not guaranteed.