The first is through dividends. Most companies that pay regular dividends do so quarterly. But not all companies declare dividends. Younger companies tend not to declare dividends, but to plow that money back into the company to spur future growth. The answer could be a strong economy, a strong performance by the company issuing the stock, or the prospect that a competitor might buy up or merge with the firm.
Capital gains are exciting for individuals.
They're equally exciting for Uncle Sam, who taxes them come April 15. With these plans, investors can ditch commissions, which could add up to several hundred dollars per buy or sell order. First started in 1896, the DJIA is an index of 30 established companies traded on the New York Stock Exchange. The ups and downs of the stock prices of these companies are used to gauge the daily movements of the overall stock market. Common error Buying high and selling low.