A mutual fund that is managed to provide income rather than capital gains. A retirement plan usually funded entirely by your employer. Contributions to a retirement savings plan that are deducted from your paycheck before income taxes are withheld. A document provided by a mutual fund company. The cost of a single unit of stock in a company.
Stocks are shares of ownership in a company.
The value of a stock is simply the amount that investors are willing to pay for it. Company news, the overall market, and national economic news may affect stock values. Stock prices tend to go up and down more than other types of investments, but also have the highest potential for long-term growth. You may earn money from stock by selling it for more than you paid for it, or by receiving dividends. Contributions to your retirement plan and the investment earnings on those contributions are tax-deferred.