Index.

Index.

An index is a statistical measure of how a section of the stock market is performing.

Well-known indices include the Dow Jones Industrial Average and the S and P 500.

Many investors watch Germany 's DAX index to find out how the European markets are doing.

Initial Public Offering ( IPO ).

An initial public offering, or IPO, is a company 's first or initial sale of stock to the public.

An IPO can give a private company access to capital to expand.

Facebook 's IPO saw the sale of over 420 million shares and about $ 16 billion in new capital.

Dividends.

Dividends.

Dividends are a portion of a company 's profits paid to its shareholders.

I prefer to invest in large, stable companies that pay quarterly dividends.