• Q. What happens to my shares if a stock splits?

  If a stock you own splits, don’t worry! This is nothing to worry about. Imagine that you have a $100 bill. You want to break it down, so you get change in the form of two $50 bills. You haven’t lost any money,…

• Q. I’m losing money in one of my investments. Should I sell and invest in something else?

  At Stash, we believe in taking the long view on your investments. We know this can be a little nerve-wracking, but an investment that is up today could lose value tomorrow. This is all a part of learning to invest. Even if you’re seeing an investment go down in value,…

• Q. How do I pick single stocks?

  When choosing a single stock to invest in, there’s a couple things you should keep in mind. First off, all single stocks can be purchased by all users, regardless of their individual risk profile. If you want to purchase single stocks,…

• Q. Do I have voting rights?

  Yes, you may have voting rights for some of the companies you invest in on Stash! You need to own at least one whole share of the stock though. Since we trade fractional shares for our customers, some of our users can hold less than one full share.…

• Q. How do I know when to sell my investments?

  At Stash, we believe in taking the long view on your investments. A pillar in the Stash Way is investing for the long-term. Even if you’re seeing an investment go down in value, we recommend holding on to it. In the long run,…

• Q. What is an expense ratio?

  An expense ratio is an annualized fee (written as a percentage of total assets) that funds charge shareholders. The fee is charged daily by deducting a small amount of a fund’s asset from a shareholder. It covers management fees, administrative expenses and other costs incurred to operate the fund.…

• Q. What is a ‘capital gain’?

  It’s pretty much what it sounds like: an increase in the value of your investment. If you sell an investment that has gained in value, that’s a capital gain. You’ve made a profit and are subject to federal capital gains taxes within your taxable brokerage account.…

• Q. Why should I be investing in ETFs?

  There are so many investing options out there, it can be confusing figuring out where to start. As a new investor, ETFs can be a great place to start your portfolio. With an ETF, you can invest in a variety of different companies or industries without needing to choose just one “winner”.…

• Q. What does fiduciary mean?

  Not only is it fun to say, but it’s also a powerful concept. It refers to a relationship built on trust and duty. Stash is a fiduciary which means we have a fundamental obligation to provide suitable investment advice to our clients and always act in the client’s best interest.…

• Q. How are dividends paid out?

  Most brokerage accounts pay dividends directly to your cash account. On Stash, this means dividends will be sent to your Cash Balance.…

• Q. What is diversification?

  Diversification means making multiple investments in different asset classes, industries, companies or regions. This can help a portfolio avoid being influenced by the same kind of risks. Diversification is the investing equivalent of the old adage, “Don’t put all your eggs in one basket.”…

• Q. Can you lose money investing in stocks?

  As with all forms of investing, there’s a risk of losing money when you invest in stocks. When you buy shares of a publicly traded company, they’re valued at a certain amount. It’s entirely possible for that amount to rise or fall.…

• Q. Do ETFs pay dividends?

  Some ETFs pay dividends and some do not. Managers of individual ETFs decide if and/or when an ETF pays dividends. Usually ETFs pay dividends depending on if: The companies within the fund are also paying dividends The prospectus (AKA objective) of the ETF is to generate income for investors through dividends Checking the fund’s website can give you more information about whether a specific ETF might pay dividends.…

• Q. Are dividends paid quarterly?

  Usually, but not always. Some publicly traded companies pay quarterly dividends. They do this because they’re legally required to report a draft of their financial statements every quarter (including how much money they want to distribute to shareholders). However, the timing of dividend payments depends on the board of directors.…

• Q. What happens to my shares if a company splits into two separate companies?

  Stash treats company splits on a case-to-case basis. If a company you’re invested in should split, Stash will either deliver company payments for shares or offer the shares of the new companies. Should a company split into two, our investment committee would consider the economic reasons for the split and assess the suitability of offering the shares of stock for each company on our platform going forward.…

• Q. How is my total return percentage calculated?

  A return is how much you gain or lose on either a single investment or an entire portfolio. You can calculate it as both a specific dollar amount or a percentage. Here’s how. For your investment positions Dollar: [current value] –…

• Q. What is a trade?

  In the investing world, ‘trading’ means buying and/or selling financial instruments, often stocks and bonds.…

• Q. Is it possible to own a full share of a stock on Stash?

  As soon as you reach the dollar amount in your Stash that matches the last price of the stock, you will own a full share of that company’s stock. It happens automatically, and you’ll be able to see it in your portfolio breakdown.…

• Q. Where do dividends come from?

  When companies generate revenue, all the money that’s left after accounting for the cost of business is the net profit, or net income. Shareholders (who are usually represented by a board of directors) choose what to do with that money. Usually,…

• Q. Can you lose money investing in bonds?

  The short answer is, yes. There is always a risk of loss when you invest, even with debt investments like bonds. However, bonds are generally considered lower risk than equity investments like stocks (particularly if they are rated highly). When you invest in investment grade debt,…

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