What Is a Dividend?

dividend is the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders. Dividends are decided and managed by the company’s board of directors, though they must be approved by the shareholders through their voting rights.

Term of the day – Bellwether Stock

Our term for the day is Bellwether Stock.

According to Investopedia:

A bellwether stock is a stock believed to be a leading indicator of the direction of the economy or of a sector of the market or the market as a whole. Bellwether stocks are typically large-cap equities. When they report strong earnings that may indicate the economy is strong. Their market performance may also signal how a sector or the market as a whole is likely to perform.