Finding individual stocks and bonds | Vanguard (2024)

Understanding investment types

Explore investment types

Investment options

What is a stock?

What is a bond?

What are cash investments?

Choosing between funds and individual securities

Finding individual stocks and bonds

Deciding on the mutual funds or ETFs you want

ETFs vs. mutual funds: A comparison

Get to know your investment costs

What are hybrid securities?

What are alternative investments?

What are call and put options?

Explore investment types

Understanding investment types

Explore investment types

Investment options What is a stock? What is a bond? What are cash investments? Choosing between funds and individual securities Finding individual stocks and bonds Deciding on the mutual funds or ETFs you want ETFs vs. mutual funds: A comparison Get to know your investment costs What are hybrid securities? What are alternative investments? What are call and put options?

Points to know

  • You can narrow down stocks by looking at certain types of companies, or by considering metrics like growth and volatility.
  • When buying bonds, you'll need to think about your purchasing strategies as well as the types of issuers you're interested in.

Mutual fund

A type of investment that pools shareholder money and invests it in a variety of securities. Each investor owns shares of the fund and can buy or sell these shares at any time. Mutual funds are typically more diversified, low-cost, and convenient than investing in individual securities, and they're professionally managed.

ETF (exchange-traded fund)

An investment with characteristics of both mutual funds and individual stocks. Many ETFs track an index, a commodity, or a basket of assets. Unlike mutual funds, ETFs can be traded throughout the day. ETFs often have lower expense ratios but must be purchased and sold through a broker, which means you may incur commissions.

Diversification

The strategy of investing in different asset classes and among the securities of many issuers in an attempt to lower overall investment risk.

KEEP IN MIND

The core of your portfolio should be made ofmutual fundsorETFs (exchange-traded funds), which offerdiversificationand lower costs. Generally speaking, individual securities should make up only a small portion of your investments, if any.

Stock

A security that represents part ownership, or equity, in a corporation. Each share of stock is a proportional stake in the corporation's assets and profits, some of which could be paid out as dividends.

Capitalization

A determination of a company's value, calculated by multiplying the total number of company stock shares outstanding by the price per share. Also called market capitalization.

Sector

A group of stocks, often related to a particular industry, that have certain shared characteristics.

Fundamentals

Quantitative data about a company, like its price/earnings ratio, balance sheet, and cash flow.

Individual stocks

You can focus onstocksbycapitalizationorsector. You may also want to look into otherfundamentalssuch as the ones below.

Earnings per share

This divides a company's net profit by the number of stocksharesavailable for trading. By looking at a stock's earnings per share over a period of several months or years, you can see how the company has grown.

Price/earnings ratio

This divides the stock's share price by the amount of earnings it's distributed in the last 12 months (per share). A high price/earnings ratio indicates that investors are expecting more growth in the future.

Because different industries have different prospects for growth, this indicator is mainly useful when comparing companies within the same industry.

Price/book ratio

This divides a stock's share price by the total value of all the company's assets minus its liabilities (per share). If the price/book ratio is low, the shares may be undervalued.

Volatility

The degree of fluctuation in the value of a security, mutual fund, or index, volatility is often expressed as a mathematical measure such as a standard deviation or beta. The greater a fund's volatility, the wider the fluctuations between its high and low prices.

52-week high/low

This represents the highest and lowest prices at which the stock has traded in the past year. A stock that nears or passes its previous high or low could see additional trading volume andvolatility.

Dividend

The distribution of the interest or income produced by a mutual fund's holdings to the fund's shareholders, or a payment of cash or stock from a company's earnings to each stockholder. Dividends can be distributed monthly, quarterly, semiannually, or annually.

Dividend yield

This divides the value ofdividendspaid in the past year (per share) by the stock's current share value. This can indicate how much of a company's cash flow is being passed through to investors.

Market

The trading of a universe of investments, based on factors like supply and demand. For example, the "stock market" refers to the trading of stocks.

Beta

This measures how volatile the stock is compared with the overallmarket.

We have resources that can help you research individual stocks.

Use our stock screener to find specific stocks (logon required)

Use our tools to search for investments

See public filings for thousands of stock issuers

More education on stocks

Use stocks to add the opportunity for growth

Get started trading stocks

Bond

A bond represents a loan made to a corporation or government in exchange for regular interest payments. The bond issuer agrees to pay back the loan by a specific date. Bonds can be traded on the secondary market.

Primary market

A place where investments are initially offered to buyers. The primary market for stocks is an initial public offering (IPO). For bonds, purchasing on the primary market means you buy directly from the bond's issuer and pay face value.

Secondary market

A place where investors buy and sell to each other (rather than buying directly from a security's issuer). Most stock and bond trading happens on the secondary market.

Ladder

A tool in the management of a bond portfolio that can be used to increase rewards or reduce risks by purchasing a number of bonds and structuring their maturities over time so that they mature at different dates. For example, buying 5-, 10-, 15-, and 20-year maturity bonds of equal value would be a bond ladder.

Barbells

A bond investing strategy where an investor holds about half of his or her portfolio in long-term bonds and the other half in extremely short-term bonds, in an effort to increase risk-adjusted returns.

Maturity

The date when the issuer of a money market instrument or bond agrees to repay the principal, or face value, to the buyer.

Risk

The potential to lose money (principal and any earnings) or not to make money on an investment.

Individual bonds

As you consider yourbondpurchases, keep these questions in mind:

  • Will you buy on theprimary marketor on thesecondary market?
  • Will you buy Treasury bonds, corporate bonds, or some other type of bonds?
  • Could you benefit from buying tax-exempt municipal bonds?
  • Will you buy bonds that form aladder,barbells, or another strategy?
  • Do you plan to sell your bonds, or hold them tomaturity?
  • Are you concerned about the potential for bonds to be called early?
  • What level ofriskare you willing to take with your bonds?

We have resources that can help you research individual bonds.

Search bonds offered through Vanguard

See information about upcoming Treasury auctions

See public filings for thousands of corporate bond issuers

Find information about specific municipal bond issues

More education on bonds

Get started trading bonds

See education on bonds from the Financial Industry Regulatory Authority (FINRA)

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Finding individual stocks and bonds | Vanguard (2024)
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