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A dividend is money from the company’s profit that is paid to its stockholders at specific intervals. The dividend can be issued in the form of cash, stocks or, technically, anything the company chooses. Hundreds of years ago, the East India Company paid their dividends in actual spices. But not all stocks pay dividends! Even if the company is profitable and could afford to share some of its cash with its shareholders, some companies choose to reinvest that money to grow the business even more. This is common for young companies. At any point, a company can decide to start, or stop paying a dividend (but usually if they change their mind a lot, shareholders start to get annoyed).

Stock definition

If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more

Stock Market definition

The stock market encompasses all the people, companies and institutions buying and selling slices of publicly-owned companies and other securities. Read more

Exchange Traded Fund definition

Exchange traded funds (ETFs) are a pool of investments sold as a single product. Remember those cheesy christmas basket, filled with the standard jam jars and hot chocolate mix, your parents might have received? Read more

  • About The Author: Edouard

    Edouard is a financial analyst at Hardbacon. He is responsible for compiling lists of securities that our users can find in the "Explore" section of the application.

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