In 2022 the S&P 500 saw a 19.62% fall, the Dow dropped by 9.62% and NASDAQ fell by 33.02%.  This article is all about the “bear market” and its effect on activist investors. 

What is a bear market and how should investors react? Read all about it here.

Blog - Investing During a Bear Market | Tulipshare

Before we get started, though, it’s important to note that we at Tulipshare are not financial advisors and the content of this article is for informational purposes only.

## What is a bear market?

A bear market is a period of dropping stock prices that often lasts several months or longer, with the main trend of the stock market being downward. During a bear market, investors are often gloomy about the status of the economy and the stock market's future prospects.

A bull market, on the other hand, is a period of rising stock prices that often lasts several months or more and in which the main trend in the stock market is upward. During a bull market, investors are often enthusiastic about the status of the economy and the stock market's future prospects.

The words "bear market" and "bull market" are frequently used to characterise general stock market mood, but they may also relate to the performance of particular stocks or sectors. 

## How long do bear markets last?

Depending on the underlying economic and market conditions, bear markets can endure anywhere from a few months to many years. There is no specific definition for how long dropping conditions must persist in order to be labelled a bear market, but most analysts believe that a bear market is commonly defined by a 20% drop in broad stock market indices such as the S&P 500 or the Dow Jones Industrial Average.

## What causes bear markets?

A variety of variables might lead to the start of a bear market. Among the most prevalent reasons are:

- A sluggish or decreasing economy, which can result in decreased business earnings and lower stock demand.
- High levels of inflation, which can undermine the buying power of investors' money and cause stock values to fall.
- The Federal Reserve's interest rate rises can make borrowing more expensive for firms and consumers, slowing economic development.
- Warfare, natural disasters, or geopolitical tensions can interrupt global commerce and economic activities.
- Stock market overvaluation - which occurs when stock prices are regarded to be too high in comparison to the underlying profitability of the company.

Bear markets are a natural part of the economic cycle. On the positive side, they can present chances for investors to purchase equities at reduced prices. But they can also be accompanied by high levels of volatility and uncertainty, which can be unpleasant for investors.

## What can investors do?

1. **Have long-term goals.** The bear market puts all investors to the test, but as history has shown, markets can ultimately rebound. Long-term investors should think about the future of the companies they hold shares in, and evaluate whether they’re equipped to last through the storms. This is where shareholder activism can play a crucial role, as efforts to improve a company’s outlook are timeless endeavours. If you’re interested in seeing how you can use your shareholder power to make improvements, check out our [shareholder activism blogs](https://tulipshare.com/blog/how-shareholders-are-changing-the-world-2?utm_source=organic&utm_medium=blog&utm_campaign=bear_market).

2. **Average cost in dollars**. In [our last piece](https://tulipshare.com/blog/drip-feeding-dollar-cost-averaging?utm_source=organic&utm_medium=blog&utm_campaign=bear_market), we explored the need for consistency in investing. You may now plan monthly or weekly deposits to enhance your savings and portfolio with our new recurring deposit tool.

3. **Diversify your holdings**.  While the market as a whole is declining, investors may conduct their own research to uncover certain markets that are still performing well. Consumer essentials such as fuel oil and gas, food, and healthcare, for example, can often buck the trends. Similarly, while tech giants like Apple and Microsoft were seeing decreases of up to  29% in 2022, consumer staples like Coca-Cola were up 4.91%, Shell was up 37.76%, and United Health Group was up 5.38%.  ETFs that follow a certain industry or market can also help investors reduce risk by exposing them to more firms. Learn more about ETFs in this [article](https://tulipshare.com/blog/intro-to-etf-and-isa?utm_source=organic&utm_medium=blog&utm_campaign=bear_market).

4. **Determine which stocks pay dividends.** You may also be entitled to dividends if you own stock. Learn about dividends and how to locate and assess dividend paying stocks in our [earlier article in this series](https://tulipshare.com/blog/how-to-identify-dividend-paying-stocks?utm_source=organic&utm_medium=blog&utm_campaign=bear_market).














How to Invest During a Bear Market

We're calling out PayPal to end their financial discrimination!

The first step to your financial independence is identifying life events and goals. What are your goals? Do you want to buy your first car? Your first house? Planning to retire early? Here's how you can plan your investment strategy based on these goals. 

Read more about how to identify life goals and turn them into financial goals. 

Blog - Building a Stock Portfolio | Tulipshare

As part of our "Building a Stock Portfolio" series, we will be kicking off by talking about life and financial goals and introducing a tool for new investors to estimate their resources needed to achieve those goals. 
 
It's human nature to live in the now and deal with whatever obstacles life throws at you, no matter your age or where you are in your life's path. In truth, most of us seldom plan more than a few days or weeks ahead, or even look at how our assets, pensions, and savings are performing from year to year.

Your objectives and financial demands will change on a regular basis. As we live longer, healthier lives, we face rising concerns about what we do with the extra time we have, and how we can afford to accomplish the things we want to do. The first step is to visualise your future: would you like to redefine your professional life? Maybe go back to school and acquire new skills? Would you like to take professional breaks to travel or raise children? Can you see yourself retiring early? Or do you picture yourself working into your older age?
 
Whatever personal life choices you make (or want to make) these are the starting points for building your financial goals. 


**Why is this important?**

Your life goals can be helpful in planning your investment strategy because it allows you to align your financial plans with your long-term priorities and values. By knowing what you want to achieve in the future, you can make informed decisions about how to allocate your resources, including your investments, to support those goals. 

For example, if one of your life goals is to retire at a certain age, you may want to focus on building a diversified investment portfolio that can provide a reliable stream of income during retirement. On the other hand, if you have a goal of starting a business or pursuing higher education, you may want to consider investments that have the potential for higher returns in the short-term to help you achieve those goals. 

Overall, aligning your investment strategy with your life goals can help you make decisions that are consistent with your values and that support your long-term financial well-being.

Here are some common life-planning goals to get you thinking:


- Family planning
- Emergency Fund
- Retirement Plan
- Life Events (Wedding, Your next summer vacation)
- Education

That's not the end of it. It's also equally as important to identify the timeline of these investments. Are you in with a long term goal that will take 10 to 15 years or are you looking for a short term turn around within year or two? Your strategy and investment cash flow will differ based on your target duration. 


**What happens after you know your goals?**

Have a good idea of your financial goals now? Great - it’s time to start thinking about what you need to invest now (and how often you’d need to invest) to meet those goals, and which available financial products match your risk appetite and desired return. Our investment calculator (available on our app) is a useful tool to help visualise estimated potential returns for products offered through Tulipshare. There are also other similar tools available to help get you started - we always encourage you to do your own research.


Building A Stock Portfolio: Identify Your Life Events and Goals 

Make sure you start 2023 with your investments in order!

The new year is fast approaching, so let’s make sure you start it right with our end-of-year checklist. 
 
✅ **Review your portfolio:**

Check in with your investments, see how they’ve been performing and measure your portfolio’s progress against your goals. You may also wish to check out some of our new campaigns, we’ve added over thirty to our website in the last few months! 
 
 

 
✅ **Check out new features, like using recurring deposits**

![Recurring_Deposit.png](https://storage.googleapis.com/cdn-f458e52/Recurring_Deposit_bebee393c5/Recurring_Deposit_bebee393c5.png)

Did you know that we recently released a recurring deposit feature on our app? Setting it up is easy: just use the "recurring payment" feature in the Tulipshare app and choose your preferred payment amount and frequency.

After each successful payment we’ll send you a reminder to invest in your chosen campaigns. Simple as that!
Recurring deposits can be a great way to maintain a consistent saving and investment habit. Here are some reasons why you may want to consider:

Investing in small amounts at regular intervals saves you the trouble of having to save up a big lump sum to invest with.

The more stock you own, the more voting power you have at the next AGM.
 
 
 
✅ **Use our investment calculator to build new goals for 2023**

In addition to improving outlooks for the planet, our communities and businesses, investing in our campaigns can support you in your journey to reaching your financial goals. Understand potential outcomes of your investments! Our investment calculator allows you to evaluate how consistent contributions over a longer term may affect your returns.

![Investment Calculator (1).jpg](https://storage.googleapis.com/cdn-f458e52/Investment_Calculator_1_f77dbff8eb/Investment_Calculator_1_f77dbff8eb.jpg)
 
 

 ✅ **Make sure you opt in to receive updates about our campaigns**

We send regular updates about our campaigns, both by email and as push notifications to your phone. These updates can include anything from dividends, to the status of a proposal, to upcoming AGM dates and information about how to vote. Being an active investor is what we’re all about, and our notifications are just our way of keeping you in the loop!

Your End of Year Financial Check-List!

Investing can be a powerful way to encourage and create radical change in multinational corporations - if done in the right way. 

We leverage shareholder legal rights to petition for positive change from within corporations. Discover Tulipshare's brand activism online today.

Tulipshare’s focus is on leveraging shareholder rights and unifying investor power to create a more ethical and sustainable world for everybody by investing in and engaging with the companies behind our campaigns. 

Interested in investing for a positive future? Here are a few things you should do before taking that first step.

### Develop a plan that you’re comfortable with

Investing starts with you and when you invest your capital is at risk. Tulipshare’s team is made up of engineers, lawyers, marketers and sustainability researchers who are passionate about shareholder activism, but cannot provide you with financial advice. Before you begin investing, we suggest you take a deep look into your financial situation to ensure that you’re comfortable with taking that first step and that you have the financial capacity to potentially lose the money that you have invested. 

What we like about Tulipshare is that they do not have a minimum investment threshold.  You can join their platform by investing as little as £1 in their campaigns as Tulipshare leverages the collective voice of their users to campaign for change. However, everybody’s financial situation is undoubtedly different. Don’t feel disappointed if you can’t start your journey as an activist investor just yet. 

### Consider campaigns that you care about

When investing for a positive future, taking the time to think about your values is super helpful. We suggest writing down some of the areas you care about most, whether that be the environment, labour rights or improved sustainability. Whatever it is you feel passionate about, activist investing could be a useful place to start changing the world for the better. 

Perhaps you’re interested in [improving labour rights in Amazon warehouses](https://tulipshare.com/campaigns/AMZN), or [stopping JPMorgan’s investment in fossil fuels](https://tulipshare.com/campaigns/JPM). Tulipshare has launched campaigns pushing this narrative and has a range of other campaigns covering a wide variety of issues. They’ll even take campaign suggestions from their users, which can be done via [their website](https://bit.ly/3r0BaUq).

### Do your homework

Taking an activist approach to investing could help change the financial world for the better. If you’re investing in traditional platforms without an activist stance, be sure to take a moment to understand [how to exercise your shareholder rights](https://tulipshare.com/blog/how-to-exercise-your-shareholder-rights). Individually investing in companies that have a poor track record when it comes to labour rights or climate change could deter efforts to drive meaningful change unless you are prepared to use your shareholder rights to engage with the companies you invest in.  

### Stay engaged 
Real positive change doesn’t stop after you have chosen to invest your money into a chosen cause. Tulipshare’s platform makes it easy to stay in the loop with campaign updates so that you remain informed and they’re super supportive in helping you exercise your shareholder rights.

Activist investing is unique in that it can bring about much-needed change by engaging with the companies you’re invested in. Rather than making your money just work for you, you could make your money work for everyone - a more conscious way of investing. The good news is you don’t have to be rich to have an impact. Through Tulipshare, all it takes is a lot of people with just a little bit of money.

Take a look through the [Tulipshare site](https://tulipshare.com/) to learn more about activist investing and create an account today!




How to Start Investing for a Positive Future

Activist investing is a form of investing that is beginning to gain significant traction.

People are waking up to the realisation that we can all do more to improve the world around us. But how can we harness activist investing to change the world for the better? 

## What is activist investing?

Activist investing is the practice of buying a large amount of a company's stock with the goal of gaining influence and pressuring the leadership team. It’s a form of direct action and is a tried and trusted way for investors to make real change even in the world’s largest corporations. Tulipshare is approaching activist investing a little differently, with targeted campaigns and collectivising like-minded activist investors. Some of Tulipshare’s activist investing campaigns have targeted the practice of [Apple](https://tulipshare.com/campaigns/AAPL), [Amazon](https://tulipshare.com/campaigns/AMZN), [Coca-Cola](https://tulipshare.com/campaigns/KO), and [JPMorgan Chase](https://tulipshare.com/campaigns/JPM). We lobby for positive change within companies using this unique strategy. 

## How can activist investing change the world for the better? 

Fundamentally, activist investors are able to drive change from within a company, as they take up positions as concerned shareholders (as opposed to concerned citizens on the outside looking in). By leveraging shareholder rights, they can make a board of directors sit up and take notice. But what are activist investors motivated to achieve?

## More focus on ESG investing

[ESG investing](https://tulipshare.com/blog/what-is-ESG-investing) has [integrated](https://corpgov.law.harvard.edu/2021/05/29/shareholder-activism-and-esg-what-comes-next-and-how-to-prepare/) into shareholder activism in that activist investors are increasingly motivated to transform environmental, social, and governance practices within the firms they invest in. We have seen numerous examples of this in recent times. For instance, activist investor [Engine No.1 spent $12.5 million to win three board seats](https://www.reuters.com/business/little-engine-no-1-beat-exxon-with-just-125-mln-sources-2021-06-29/) at ExxonMobil in 2021 - one of the most groundbreaking acts of activist investing we’ve seen. 

The main reason that Engine No.1 took action was a direct result of the company’s inattentive response to climate concerns. The team at Engine No.1 are seeking to put pressure on ExxonMobil to initiate a clean energy strategy, something that is of paramount importance if we’re to achieve our collective climate change targets, as [outlined at COP26](https://ukcop26.org/) last year.

By utilising their positions as shareholders, activist investors can have the opportunity to drive environmental and social change within the biggest - and most irresponsible - companies on the planet. We feel that if activist investing were to become more widespread, we could potentially see a huge swing in favour of more sustainable practices at companies with a poor environmental track record. 

Activist investing with [Tulipshare](https://www.tulipshare.com/) provides retail investors with the perfect opportunity to work together to bring about collective change. We have designed our campaigns so that everyone can get involved, no matter how big or small the contribution is.

## Hold management to account and influence policy 

Once an activist investor has a stake in the company that they wish to transform, they typically set about their work for a finite period until their task is complete. In almost all instances, activist investors want to hold the board of directors to account and influence company policy in some way. 

Investors can achieve their aims through launching media campaigns, participating in proxy votes, and using litigation to drive change at the company from the inside. Huge companies are often more than happy to ignore outside noise from demonstrators, but they can’t ignore their shareholders so easily. Because of the transformative nature of activist investing, socially conscious investors have the opportunity to change the world for the better by putting pressure on various companies, particularly in relation to their environmental and social policies.

## Ready to get involved in activist investing? 

If you’re keen to make a positive change in the world, then activist investing is an excellent way to go about it. All you have to do is to [sign up for an account with Tulipshare](https://tulipshare.com/signup) and browse through our current campaigns. 

Equally, if you’re passionate about a particular campaign that we’re not currently involved in, feel free to send it our way, and we will be more than happy to look into it. 

How Can Activist Investing Change the World?

 In addition to improving outlooks for the planet, our communities and businesses, investing in our campaigns can also help you reach your financial goals. 

Tulipshare's investment calculator feature can help you visualise your financial goals

Blog - Investment Calculator Tool for Individual Investors | Tulipshare

Saving for a big life event like a wedding, university, or even retirement? Our new calculator feature allows you to see how much you’d need to invest today to build a better future.

Did you know that only about 13.5% of market shares are owned by individual investors, according to a [Freetrade report](https://freetrade.io/retail-investors)? The rest are owned by asset managers and institutional investors. But right now we are seeing a huge boom in individual investors (also known as retail investors) who want to start making some of their own investment decisions. 

Use our calculator to get a better understanding of how investments and recurring deposits can change your portfolio value over a certain period of time.

![Investment Calculator (1).jpg](https://storage.googleapis.com/cdn-f458e52/Investment_Calculator_1_f77dbff8eb/Investment_Calculator_1_f77dbff8eb.jpg)

If you’re still on the fence about investing and not sure where to start, check out our [Investing Basics 101](https://tulipshare.com/blog/investing-basics-101-4-resources-for-1st-time-investors?utm_source=organic&utm_medium=blog&utm_campaign=investment+calculator) series. It’s full of lots of good educational material to help get you started.

[![Investment Calculator (2).jpg](https://storage.googleapis.com/cdn-f458e52/Investment_Calculator_2_a6d002d998/Investment_Calculator_2_a6d002d998.jpg)](https://tulipshare.com/blog/investing-basics-101-4-resources-for-1st-time-investors?utm_source=organic&utm_medium=blog&utm_campaign=investment+calculator)

Please note that we are not financial advisors and this calculator does not constitute financial advice, nor can the calculated projections be guaranteed. If you do decide to invest please remember that, as with any investment, your capital is at risk.


Our New Investment Calculator Can Help You Visualise Your Goals

Check out our campaign for McDonalds packaging to be more sustainable

The stock market is an intricate global body that is made up of a broad range of financial exchanges. It’s incredibly complex and serves multiple core purposes, as we explore throughout this article. 

The stock market can seem complex, so we've explained the global stock market, its functions and the best ways to invest in it. Read online today. 

What is the stock market's role? | Tulipshare

## The stock market explained

The stock market encompasses a range of exchanges and specific venues that facilitate the buying, selling, and trading of shares in publicly held companies. 

Although it’s commonly referred to as the stock market - implying a single entity - it’s more appropriate to regard the global financial marketplace as one that is made up of multiple stock exchanges. In fact, there are more than [sixty stock exchanges](https://en.wikipedia.org/wiki/List_of_stock_exchanges) in the world, and there are sixteen in total that have a market capitalisation of more than $1 trillion each.

The [largest stock exchange in the world](https://www.statista.com/statistics/270126/largest-stock-exchange-operators-by-market-capitalization-of-listed-companies/) by market capitalisation is the New York Stock Exchange (NYSE), followed by National Association of Securities Dealers Automated Quotations (NASDAQ), both of which operate in the United States. The biggest exchange in Europe is Euronext, which has a market capitalisation of $7.38 trillion. 

Ultimately, the stock market enables buyers and sellers to transact and allows price discovery for shares in corporations. The trading of the stock market is broadly seen as a representation of the overall health of a particular economy. This is because its peaks and troughs tend to represent real-life events and occurrences that affect the global financial climate. 

## What does the stock market do? 

At its essence, the stock market allows buyers and sellers to negotiate prices and complete trades. When a company is listed on the stock exchange, the directors raise capital in order for the business to grow by selling shares. Investors then buy and sell these shares within the stock market, which tracks the instance of all transactions completed. 

The stock market also serves multiple crucial functions, as we explain below: 

**Enables dealings in securities** 

The stock market provides the platform that ensures all interested buyers can complete securities transactions. By utilising [automated trading systems](https://www.investopedia.com/articles/trading/11/automated-trading-systems.asp), the market ensures the best buyers and sellers are matched, given the quantity of any proposed trade. 

**Provides the opportunity for price data accuracy and real-time updates**

Fundamentally, the stock market allows anyone to discover the price and value of a publicly-traded company. It achieves this by assessing market supply and demand and alters the trading price to accommodate for any changes in value. 

**Improves transaction security** 

The stock market is regulated by independent financial authorities - such as the Securities and Exchange Commission in the US - which ensures the transactions completed on the stock market are secure and valid, protecting both the buyer and seller. 

**Supports various market participants** 

There are multiple actors within the stock market, including traders, investors, market makers, speculators, and hedgers. Each of these roles is facilitated by the existence of the stock market, and it is required to ensure that all participants are able to operate within it seamlessly.

## How do you invest in the stock market? 

There are multiple ways of investing in the stock market. Some people work with investment managers who they task with managing their investments. Others invest through pension funds, while some set up an online brokerage account and invest through registered broker-dealer platforms ([such as Tulipshare’s](https://www.tulipshare.com/)). 

One unique and inspired way of investing in the stock market, given the turbulent world in which we currently live, is to participate in an [activist investing campaign](https://www.tulipshare.com/). At Tulipshare, we provide a platform for individual investors to place their money in the stock market while supporting campaigns that are hoping to make a difference in the world. 

Our platform identifies opportunities for ethical change within companies publicly traded on the NYSE and NASDAQ, and we invite you to get involved. 

By leveraging shareholder power, we are prioritising social impact over social returns to ensure we can hold companies to account and put pressure on them to re-examine their policies. 

For more information about our current campaigns and to find out how you can invest in the stock market with TulipShare, be sure to check out how activist investing works.


What is The Role of the Stock Market?

With Amazon’s recent stock-split announcement many wonder what this means for current shareholders and our Tulipshare campaign.

Blog - What is a Stock Split? | Tulipshare

The cost of purchasing just one Amazon share has long been too high for many ordinary investors, but that is now changing thanks to a recent announcement from Amazon.

In March, Amazon (AMZN) shareholders approved the company’s first stock split in 23 years. A stock split is when a company divides its existing stock into multiple shares, subsequently lowering the price of each share and making them more accessible to the average investor. Stock splits do not affect a company’s market capitalisation.

[The split came into effect on Monday and, since then](https://www.forbes.com/advisor/investing/amazon-stock-split/), the price of a single Amazon share has dropped by 95 percent - from $2,450 to around $120.


## What is a stock split?

A stock split happens when a company divides current shares into multiple shares, increasing the number of available shares and lowering each share's price. In the case of Amazon, they implemented a 20-for-1 stock split, which means that existing shareholders will get 19 shares for every existing share owned. This also means that each share is worth only one-twentieth of what it was worth before.

The stock price typically fluctuates as a result, but the company's core worth does not. The result means that equities become more inexpensive and accessible to a broader range of investors, as well as increasing liquidity for the company.

While a stock split may appear to make a firm more inexpensive, it is important to note that the total value of an investor’s shares will be worth the same as they were before the split. 


## Why issue a stock split?

Stock splits are usually a good indication that a company is doing well in the market. The decision to divide stocks is typically made after the price of shares becomes exceedingly costly for the typical investor, making them less accessible and affordable. Despite another excellent year in terms of sales and net profit, Amazon's stock price [dropped by 25%](https://edition.cnn.com/2022/04/28/tech/amazon-earnings-loss/index.html). This price drop was exacerbated by concerns such as supply chain disruptions, increased prices, poor investment decisions, and [poor workers' rights records](https://tulipshare.com/campaigns/AMZN), among other reasons.

Still, at a price of $2,450 per share, a typical retail investor might be unable to purchase any significant number of full shares, or perhaps even limited instead to buy fractional shares, which are only available through limited brokerage firms.  This can be a significant barrier and often a dealbreaker for many investors.  However, at the new, lower price, investors are incentivised to purchase more shares, and opportunities are created for new investors to purchase shares too. 

Another motivation for stock splits [could be an attempt to be included](https://www.cnbc.com/2022/02/01/alphabet-stock-split-paves-way-for-addition-to-dow.html) in the Dow Jones Industrial Average(DJIA). The Dow Jones is a price-weighted index that compares the share prices of 30 significant American corporations to their market capitalisation. 

As a result, a stock split and lower share price could make AMZN more appealing as a DJIA price-weighted business.

## How does it affect Tulipshare users who own stock in Amazon?

The split was approved by shareholders at the company AGM on the 25th of May this year, and the record date for shareholders affected by the split was the 27th of May. This means that anyone who purchased Amazon shares prior to the 27th will automatically have 19 shares for every share owned.  

Further trading began on the new split-adjusted basis on the 6th of June.*

Tulipshare members who hold Amazon shares do not suffer any value adjustments as a result of the stock split. As these cheaper shares make it more affordable, Tulipshare users can also use this opportunity to buy more Amazon shares. In the short term, having an inexpensive price will encourage more retail investors to acquire shares, resulting in a short-term increase in share price. 

Tulipshare has been [actively campaigning to ensure fair and safe working environments](https://tulipshare.com/campaigns/AMZN) for Amazon warehouse workers by ​​pushing Amazon to conduct an independent audit of warehouse working conditions. This year the Securities and Exchange Commission (SEC) sided with Tulipshare’s proposal, pushing it to a vote at the company’s AGM, setting a precedent for human capital management proposals. Though the proposal ultimately did not receive the majority backing from shareholders needed to pass,  it did manage a whopping 44% support in votes, which would have amounted to a 53% victory had it not been for the large number of insider shares owned by Jeff Bezos.  As the struggle for workers' rights and safety continues, we'll keep you posted on the campaign's progress.

Don't forget to [watch our video](https://www.youtube.com/watch?v=MnK7WeATKi0&t=17s) about why Amazon's workers' safety is a concern.

*For more information regarding the record date for this split, please see [Amazon’s Form 8-K filing.](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001018724/000101872422000009/amzn-20220309.htm)

What is a Stock Split and How Does it Affect Investors?

Join us to ask YUM! Brands to reduce plastic pollution at your go-to fast food chains: KFC, Taco Bell and Pizza Hut!

Staying disciplined and consistent helps you avoid making decisions based on fear and panic. Learn more about drip-feeding and dollar cost averaging - and why it pays to be consistent with investing!

Read to learn more about drip-feeding and dollar cost averaging - and why it pays to be consistent with investing!

*Before we get started, though, it’s important to note that we at Tulipshare are not financial advisors and the content of this article is for informational purposes only.*

Consistency can be a virtue when it comes to investing because it facilitates discipline and discourages rash judgements based on short-term market swings or emotional reactions to news and events. By sticking to a consistent investing approach, you can better align to your long-term goals and risk tolerance, rather than market noise or other external influences which can, in turn, help better manage risks.. Overall, consistent strategies are often seen as more reliable for  achieving long-term financial goals with lower risk.

One way to practise consistency is by drip-feeding and understanding dollar cost averages.

**What is drip-feeding?**

Drip feeding is the practice of investing a set amount of money at regular periods rather than a large payment all at once.

This can be done actively, or passively. Many platforms offer a recurring deposit feature, which allows you to automate your monthly or weekly investing contributions.

**Why do investors like smaller and regular deposits?**

Drip feeding has various possible advantages:

- Dollar cost averaging: By investing a predetermined amount at regular periods, you will be purchasing shares at various, fluctuating prices rather than all at once. This can mean purchasing stock at an overall better dollar cost average than if you had purchased a large amount in one go.

- Reduced risk: Because drip-feeding allows you to stretch your purchases out over a longer period of time, it can help lessen the risk of investing a significant chunk of money all at once. Building up your investment portfolio slowly but surely canhelp mitigate the risk of short-term market changes.

- Build your savings : 
By selecting a smaller amount of money that you know you can set aside every month (or week), and then drip-feeding that amount into your portfolio, you may find it easier to grow your savings. Especially with the help of any [dividends](https://tulipshare.com/blog/how-to-identify-dividend-paying-stocks) and interest (or even [compounding interest](https://tulipshare.com/blog/the-compounding-effect)) earned. This is a good time to remind you that when investing, capital is at risk - meaning the value of your investments can go up as well as down. 

- Flexibility : 
Drip feeding allows you to tailor your investing plan to your unique requirements and circumstances. For example, you may wish to change the amount you contribute or the frequency with which you invest according to your circumstances. 


Overall, drip-feeding could be a beneficial investment strategy for people who prefer a more disciplined approach to saving and investing. It can help you decrease risk, cut your overall investing costs, and give a flexible approach to save and invest over time.

By contrast, an inconsistent investor might be one who is prone to making hasty judgments influenced by short-term market fluctuations or emotional reactions to news and events, which can lead to panic selling. 

**But what happens when you're in a bear market?**

A bear market is a period of falling stock prices, typically defined as a decline of 20% or more from recent highs. During a bear market, investors may experience significant losses and may be unsure of what to do with their investments. Here are some facts from 2022; the S&P 500 saw a 19.44% fall, The Dow dropped by 8.78% and NASDAQ fell by 33.10%. 

In most cases, the first instinct would be to exit and mitigate further losses. Cut-off targets are specific price points that are used as a reference for deciding when to sell an investment. For example, an investor might set a cut-off target of 10% below their purchase price as a trigger for selling an investment. If the price of the investment falls to or below this level, the investor would then sell their position. 

Should you continue to invest? Remember that markets may be volatile, and an exit strategy or cut-off goal should not be the only aspect examined when choosing whether to sell an investment. Factors such as the intrinsic worth of the investment and the investor's long-term financial aspirations should also be considered.

However, it is crucial to realise that investing during a bear market has inherent risks, and there is no assurance that you will see returns. Before considering whether to invest during a bear market, thoroughly assess your investing goals, risk tolerance, and financial status. It may also be a good idea to seek the advice of a financial advisor or professional investment manager if you are uncertain about what to do.


Drip Feeding and Dollar Cost Averaging: Why It Pays to Be Consistent With Investing

Our new campaign at JPMorgan just got stronger!

As the saying goes : you shouldn’t put all your eggs in one basket. But how does this translate to investing? It’s called ‘diversification’ - and we’re here to explain!

Read more to learn about portfolio diversification and choosing the mix that works for you. 

Blog - Building a Stock Portfolio - Diversifying | Tulipshare

Diversifying your portfolio by investing in a variety of stocks, bonds, and other assets can help to spread out the risk and potentially increase your chances of earning a positive return. By contrast, investing in a single stock carries a higher level of risk, as the value of your investment is dependent on the performance of that one company. If the company performs poorly, the value of your investment could decline significantly. 

By investing in a range of assets, you can potentially reduce the impact of any one investment performing poorly, as the overall performance of your portfolio may be more stable. 

Before we get started, though, it’s important to know that we at Tulipshare are not financial advisors, and the content of this article is for informational purposes only.

**What Options Are Available?**

There are many different types of investments, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and real estate. Each type of investment has its own set of risks and potential rewards, and it is important for investors to understand these differences before making any investment decisions. Here is a brief overview of some common types of investments: 

**Stocks**

A stock represents an ownership stake in a company. When you buy a stock, you are buying a small piece of the company and becoming a shareholder. As a shareholder, you are entitled to a portion of the company's profits, and you can also vote on company agendas at shareholder meetings. Stocks can be volatile and their value may fluctuate significantly over time.

**Bonds**

A bond is a loan made to a government or a corporation. When you buy a bond, you are lending money to the issuer in exchange for interest payments and the return of your principal when the bond matures. Bonds are generally considered to be less risky than stocks, but they also offer lower potential returns. 

**Mutual funds**

A mutual fund is a type of investment vehicle that pools together money from many investors and uses it to buy a diversified portfolio of stocks, bonds, or other securities. Mutual funds are managed by professional fund managers, who use the pooled money to buy a diverse range of assets in an effort to reduce risk and increase returns. 

**ETF**

An ETF is a type of investment fund that tracks the performance of a specific market index, such as the S&P 500. ETFs are traded on stock exchanges and can be bought and sold like individual stocks.

This is just a brief overview of some common types of investments. It is important to do your own research and consult with a financial advisor before making any investment decisions.

**Choosing the mix that works for you**

There are several factors to consider when choosing your own mix of investments. Here are a few tips to help you get started: 

- **Determine your investment goals:**
What are you trying to achieve with your investments? Are you saving for a specific life goal, trying to generate income, or looking to grow your wealth over the long term? Your investment goals will help guide your decision-making process. Check out our previous article (Link to article 1) to learn more. 

- **Think about your time horizon:**
How long do you plan to invest your money? If you have a longer time horizon, you may be able to take on more risk, as you have more time to ride out any short-term market volatility. 

- **Evaluate your financial situation:**
Consider your current financial situation, including your income, expenses, debts, and any other financial obligations you have. This will help you determine how much you can afford to invest and how much risk you can handle. Our app has a calculator tool for new investors to help you understand the potential outcomes of your investments. Sign up to get exclusive access to our investment target calculator! 

- **Consider your risk tolerance**: 
Different investments carry different levels of risk. It's important to choose investments that align with your risk tolerance, which is your willingness to accept the ups and downs of the market in pursuit of your investment goals. 

Stocks carry more risk than some other types of investments. When you buy a stock, you are taking on the risk that the company's performance may not be as strong as you expect, which could cause the value of the stock to go down.

The risk of bonds is generally lower than stocks, but the potential for return is also generally lower. The risk of default, or the issuer not paying back the bond, is a potential risk with bonds.

The risks of mutual funds depend on the specific types of securities they hold, but they can offer a way to diversify your portfolio and potentially reduce risk.

ETFs are similar to mutual funds in that they hold a diversified portfolio of securities, but they are traded on an exchange like stocks. The risks of ETFs depend on the specific securities they hold, but they can offer a way to diversify your portfolio and potentially reduce risk. 

Your target asset allocation should contain a percentage of stocks, bonds, and cash that adds up to 100%. A portfolio with 90% stocks and 10% bonds exposes you to more risk—but potentially gives you the opportunity for more return—than a portfolio with 60% stocks and 40% bonds. 


Building A Stock Portfolio: Picking Your Mix of Investments

Check out our campaign to stop the sales of talc-based Baby Powder

Did you know that shareholders have the right to vote on corporate actions, policies, board members, and other issues?

Tulipshare believes voting at company AGMs is an important part of being a shareholder. Read more about how to use your shareholder vote online.

### What is a voting right?

A voting right is the right of a shareholder of a corporation to vote on matters of corporate policy, including decisions on the makeup of the board of directors, say on pay, corporate bylaw changes, issuing new securities, initiating corporate actions like mergers or acquisitions, approving dividends, and making substantial changes in the corporation's operations. It is common for shareholders to voice their vote by proxy by mailing in their response or by relinquishing their vote to a third party proxy voter.

### How do shareholder voting rights compare to voting rights in democratic governments?

First and foremost, it’s important to keep in mind that not all shares have voting rights attached to them. When you’re selecting what platform you invest on you can usually find information on their voting rights through their website. 

Unlike the single vote right that individuals commonly possess in democratic governments, the number of votes a shareholder has corresponds to the number of shares they own. Thus, somebody owning more than 50% of a company's shares can affect a majority of the vote and is said to have a controlling interest in the firm.

In the US, provisions in a private corporation's charter and its bylaws govern shareholders’ rights, including the right to vote on corporate matters. Along with state corporation laws, these provisions may limit the voting rights of shareholders. When a company goes public, shareholder rights are determined by the corporation, but must follow rules and guidelines established by the Securities and Exchange Commission as well as any rules set out by the exchange(s) that list the shares of the company.

### What are shareholders able to vote on? 

Shareholders have the right to vote on corporate actions, policies, board members, and other issues, often at the company's annual shareholder meetings.

Because a corporation’s officers and board of directors (BOD) manage its daily operations, shareholders have no right to vote on basic day-to-day operational or management issues. However, shareholders may vote on major corporate issues, such as changes to the charter or to vote in or out members of the board of directors. Although common shareholders typically have one vote per share, owners of preferred shares often do not have any voting rights at all.

### What are the eligibility requirements to vote? 

Typically, only a shareholder of record is eligible for voting at a shareholder meeting. Corporate records will name all owners of outstanding shares along with a record date preceding the meeting. Shareholders not listed in the record on the record date may not vote.

### If I own fractional shares, will I be able to vote on Tulipshare? 

Yes. DriveWealth, the carrying broker for brokerage services provided by Tulipshare, uses Say Communications, LLC (“Say Communications'') to facilitate the extension of voting rights to Fractional Shares. When you vote your interest in a Fractional Share, Say Communications will add the fractional position voted by you to the aggregate vote total for all shares of such security reported by Say Communications on behalf of DriveWealth to the applicable vote tabulator (“Tabulator”) for the meeting or shareholder event. 

### If I own fractional shares on other platforms, will I be able to vote? 

It depends on the brokerage firm's fractional share investing program. Also, each company has its own voting requirements. You most likely don't get a vote with a fractional share; and you can't aggregate (pool) shares to have a vote. We suggest reaching out to the brokerage platform that you use to learn more about their policies and procedures. 






Everything You Need to Know About Voting as a Shareholder

Check out some of our campaign for more sustainable packaging at McDonald's

In a world where we could all be doing more to negate the environmental and social impacts of big business, system-level investing is a way of doing just that.

System-level investing is about understanding the social and environmental implications of an investment, rather than just financial. Discover on Tulipshare.

What is system-level investing? | Tulipshare

## What exactly is system-level investing? 

System-level investing refers to the intentional consideration given by investors to the bigger picture. As opposed to mere financial gain, system-level investing is about understanding the context of an investment and the broader environmental, social, and financial implications such an investment might have. 

According to William Burckart, co-author of the book 21st Century Investing: Redirecting financial strategies to drive systems change, the concept is best described as [follows](https://www.forbes.com/sites/bobeccles/2021/04/28/21st-century-investors-manage-systemic-risks-through-system-level-investing/?sh=50ead96a1f18): "By calling this approach system-level investing, we want to be clear: a primary responsibility of 21st-century investors - whether individuals, families, or institutions - is to ensure that their investments intentionally support the health and resilience of crucial systems, reduce systemic risks, and promote opportunities for all."

System-level investors are concerned with actually doing something about the many issues facing the planet, and use their collective investment to bring about real-life, systemic change that can influence the future direction of some of the biggest issues of the age (think [climate change](https://tulipshare.com/blog/COP26-and-funding-climate-change), for instance). There are typically three core aspects (or systems) to system-level investing: 

**Environmental**

For investments to be profitable long into the future, the physical and natural environment of planet earth must remain intact. Human-induced climate change as a result of natural resource depletion and a lack of access to clean and fresh water sources are all jeopardising the future of our planet.

**Social**

If businesses are to thrive, they must have strong governance and civil structures in which to operate. Issues relating to income inequality, poverty, poor health, and inhumane working conditions all combine to pressurise societies and create unsuitable environments in which businesses have to operate. 

**Financial**

The complex global financial world is an intricate mosaic of laws, regulations, and institutions that combine to enable markets to function smoothly. For markets to operate and people to profit, these systems must be thriving and based upon stability, trust, and transparency. 

## How is this any different from ESG investing? 

It's become an [upward trend](https://www.reuters.com/markets/us/how-2021-became-year-esg-investing-2021-12-23/) for investors to consider a broad range of [ESG](https://www.tulipshare.com/blog/what-is-ESG-investing) - environmental, social, and governance - issues before deciding where to invest their money. 

System-level investing is certainly similar but focuses more on generating measurable influence on the broad environmental, societal, and financial systems within which investors operate. The overwhelming goal of system-level investing is to create a much more sustainable world, which will ultimately support an investor's long-term priorities. 

### Two Examples of system-level investing 

William Burckart has highlighted several examples of what he terms system-level investing in his book, including: 

**The Government Pension Investment Fund of Japan**

As a [pension fund worth more than $1.6 trillion](https://www.forbes.com/sites/bobeccles/2021/04/28/21st-century-investors-manage-systemic-risks-through-system-level-investing/?sh=50ead96a1f18), the Government Pension Investment Fund's (GPIF) fate is tied to the health of the Japanese economy, given its long-term focus. The fund promotes the steady and sustainable growth of the overall market, realising that its success is underpinned by the health of the economy. 

**The Church of England Pensions Board **

Similarly, the Church of England Pensions Board has [a fund worth more than £36.4 billion](https://www.forbes.com/sites/bobeccles/2021/04/28/21st-century-investors-manage-systemic-risks-through-system-level-investing/?sh=50ead96a1f18) and has developed a stewardship implementation framework that details the church's management of the funds and affects the wider societal impact that their investments have. 

## Want to be more mindful with your investments? 

One of the most effective ways you can contribute to systemic, positive change is [activist investing](https://tulipshare.com/blog/ESG-and-shareholder-activism). Activist investing is all about harnessing shareholder power within companies to make better choices, which will ultimately contribute to the health and wellbeing of our entire planet. 

If you want to contribute to a more sustainable future for everyone and want to drive forward real change in the world, find out more about how activist investing with [Tulipshare](https://www.tulipshare.com/) works and how you can get involved. 


What is System Level Investing?

Congratulations on making your first investment! Buying your first share is just the first step - welcome to the post-investment journey. Here’s what comes next.

A new investor's guide to the post-investment journey.

Blog - Investing Basics 101: I've Bought My First Share! What Now? | Tulipshare

But before we get started it’s important to remember that we at Tulipshare are not financial advisors, and the content of this article is for informational purposes only. 

## Check your portfolio

It’s a good idea to regularly check your portfolio so that you can see how your investments perform. 

How often you check your portfolio is completely up to you, and it depends on your investment goals and whether they are long term or short term. Short term goals would typically require more frequent monitoring than long term. 

Decide what your goals are and then set a reminder to make daily, weekly, monthly, or even yearly check-ins. 

## Stay up-to-date on company news

Though you may have thoroughly researched the company before investing and examined its projected performance, it’s a good idea to continue monitoring company news and performance so that you can make the most informed decisions possible regarding your investments. 

Company news will inform you of key project pipelines and management efficiency, all of which potentially translates to share price and performance.. Even the smallest piece of information can affect how the share performs. Sometimes external factors such as government policies, interest rate hikes, economic and political agenda can also influence the performance. 

Monitoring this information helps compare how the share price is performing against your expectations. When a share underperforms, you may well wish to plan an exit strategy and invest in new opportunities. Or perhaps you can use your shareholder rights to engage with the company’s investor relations team to discuss ways of improving performance.

## Follow trends and markets

Every day is different. Companies fall off the S&P 500 and new ones enter. The top 10 companies change all the time!

For example, if you held an ExxonMobil (NYSE : XOM) stock 5 years ago, you would have made 15.91% today. But if you bought a Tesla (NASDAQ : TSLA) stock 5 years ago, the return to date would be 1053.54%. 

Being aware of key business trends and shifts in the market can help you be a more engaged investor. It’s also a good idea to monitor corporate values and ESG performance, as well as competitor performance, as these will ultimately play into performance depending on current trends. 

A decade ago oil corporations dominated the stock index, and now we’re seeing a shift to e-commerce, AI, digitalisation and sustainable energy. Being aware of these changes within the market will help you inform your investment choices. 



Investing Basics 101: I've Bought My First Share! What Now? 

We're asking Microsoft to stop funding anti-abortion movements!

In this article we talk about how you can potentially earn interest on your interests! Compounding can start with something small, but as the saying goes: a man moves mountains by first moving small stones. 

Read more to learn about the compounding effect and how you can potentially earn interest on your interests.

Blog - The Compounding Effect | Tulipshare

Before we get started, though, it’s important to note that we at Tulipshare are not financial advisors and the content of this article is for informational purposes only.

**What is compounding?**

Compounding is the process of generating earnings on an asset's reinvested earnings. In other words, it’s when you earn interest on an asset and then re-invest that interest. This can create a snowball effect, where the returns on an investment continue to grow over time. 

For example, if you invest $100 at a 10% annual interest rate, you would earn $10 in interest in the first year. If you reinvest that $10 in the second year, you would earn an additional $1 in interest (10% of $10), for a total return of $11. If you continue to reinvest the returns, your investment would continue to grow over time. 

Compounding can be a powerful tool for building wealth, particularly when it comes to long-term investments. By reinvesting returns over a long period of time, investors can potentially earn significant returns on their initial investment. However, it's important to keep in mind that compounding also requires patience, as it can take time for its effects to be significant.

**Does frequency of compounding have an effect on the total profit?**

A higher frequency of compounding means that returns on an investment will be compounded more frequently, which can lead to a higher total return over time. This is because a higher-frequency of reinvesting can generate additional returns more quickly. 

For example, if an investment of £10,000 earns a 10% annual return and its interest is compounded **annually**, the investment will be worth £11,000 (£10,000 X 1.1) after a year, making £1,000 in interest.  

If the **same** investment is compounded **semi-annually**, the investment will be worth £11,025 (£10,000 X 1.05 X 1.05), making £1,025 in interest which is £25 higher than if compounded annually. As you can see, the total return is slightly higher when the investment is compounded semi-annually, due to the additional compounding periods. 

It's important to note, however, that higher frequency of compounding alone does not guarantee a higher profit. Other factors such as the rate of return, the length of the investment period, and the amount of the initial investment can also affect the total return on an investment. Additionally, higher frequency of compounding may come with additional costs or fees, which could offset some of the potential benefits.

**Tools for new investors**

Want to know how different compounding frequency can affect interest earned and reduce or increase deposit amount? Get exclusive access to our Excel compound calculator template by filling out [this form](https://383d88f5.sibforms.com/serve/MUIEAClN8ekYGvnfq8eNerBeiAWJ4MDskEnDY5RLDMPHvhaIA7JMUwayZvZgHul6Sw7y9F-dwmSO4neG0oTMTVhQtzxbYp0DAOIHUfeFb0oQ96nmT7Dc65ku3zf9NGYkssfWepzweBp-oxcDGhgrg6Rxpwc0q60qNUwlyJQ9mF7qmhe8ttYU77bIuqdmbTSjcEefBd8q9SRBy6Yw)!

It's important to note that these calculators are intended to provide estimates and may not be completely accurate. It's always a good idea to consult with a financial advisor or do your own research to get a more accurate understanding of the potential returns on an investment.


The Compounding Effect: What Happens When You Re-invest Returns?

Huge news! Apple promises to disclose more details about app removals.

Declaration date, ex-dividend date, record date and payment dates - I've seen these terms in my portfolio but what do they mean?

Declaration date, ex-dividend date, record date and payment dates - I've seen these terms in my portfolio but what do they mean? Read more to find out!

**What is a dividend and are you eligible?**

A dividend is a payment given by a corporation to its shareholders, often as a division of earnings. Dividends can be paid in cash or as new shares of stock. Dividends are normally paid on a regular basis, such as quarterly or yearly, and the amount of the dividend is usually chosen by the company's board of directors. 

Check out our [previous article on dividends](https://tulipshare.com/blog/how-to-identify-dividend-paying-stocks) to learn more about dividends and how to identify dividend-paying companies. You can also see which Tulipshare campaigns had the highest dividend yields in 2022 here. 

Your eligibility for dividends depends on the type of share you hold and whether you have been holding the company share on the record date and have purchased the share before the ex-dividend date. What do these dates mean?

**Introducing Dividend Calendars**

Keeping track of dividend dates can be overwhelming, especially if you own more than a single stock, let alone a diversified portfolio. A dividend calendar is a tool used by investors to track upcoming dividend payments from companies. Dividend dates are the dates on which a company pays out dividends to their shareholders. Dividend payments are typically made on a quarterly or semi-annual basis, although some companies may pay dividends on a monthly or annual basis.

A dividend calendar is a useful tool for investors to keep track of when they can expect to receive dividend payments from companies they own shares in. It is important to note that the dividend calendar is not a guarantee of when a company will pay out dividends, as the company may decide to change the dividend payment date at any time. Here's what each of the dates mean in your dividend calendar:

**Declaration Date**

The declaration date is typically when the board of directors declares a dividend, announces the dividend amount that will be paid and the payment date. 

**Ex-Dividend Date**

This is the date on which a company's shares become ex-dividend, meaning that any new buyers of the company's shares will not be eligible to receive the dividend payment. The ex-dividend date is typically two business days before the dividend payment date.

**Record Date**

This is the date on which the company will record the names of shareholders who are eligible to receive the dividend payment. The record date is typically one business day before the dividend payment date.

**Payment Date**

This is the date on which the company will make the dividend payment to its shareholders. The payment date is typically several weeks after the company declares the dividend.

**Where can you find these dividend dates?**

Most of these dates are published on the company's investor relations site or financial calendar. For example, looking at [Apple's dividend history](https://investor.apple.com/dividend-history/default.aspx) (which can be found on their investor relations site) can give you a better idea on the expected dates and dividend amounts. 


Another option is to visit the websites of the stock exchanges where the firm is listed, such as [NYSE](https://www.nyse.com/ex-date-dividends) or [NASDAQ](https://www.nasdaq.com/market-activity/dividends). They also give information about dividends and important dates.

Brokerage firms will also send alerts to their clients when the dates are declared and payments are made. 

**Tools for investors**

A dividend calendar is a helpful resource for investors to monitor the dividend payments of the companies they have shares in. It provides information such as the date of dividend payment, ex-dividend date, record date and payment date.

[Dividend tracker](https://apps.apple.com/gb/app/dividend-tracker/id1512637716) on the app store is one that allows you to view insights on your payouts, see your portfolios in a place to analyse dividend income, and visualise your annual and monthly dividend earnings automatically. 


Dividend Calendars: What Are They and Why Should Investors Know About Them?

Check out how we're pushing for safer working conditions at Amazon

There’s no doubt that we live in a fractured world, with so many global issues it can feel overwhelming. This year, the wisdom that ‘no one can do everything, but everyone can do something’ is more pertinent than ever before. 

Activist investing could be how you use your money to advocate for positive social and environmental change. Explore your options on Tulipshare today.

Investing your money where your mouth is | Tulipshare

Below, we explain how you can put your money where your mouth is this year to tackle societal issues that matter to you.

## Activist investing allows you to put your money where your mouth is

Historically, one of the best ways you could contribute to a cause you cared about was by donating to charity and hoping for the best. While charitable giving is still important, it’s certainly not the only way to make a difference. [Activist investing](https://www.tulipshare.com/blog/what-is-ethical-investing) is a modern way of helping to influence policy at the largest global conglomerates to create a better world for us all. 

Similar in some respects to [ethical investing](https://tulipshare.com/blog/what-is-ethical-investing), activist investing leverages the collective power of shareholders to drive change from within. Rather than passively buying shares in companies that align with your values, activist investing has the potential to influence policy and bring about change in some of the world’s most unethical companies. 

Instead of being concerned citizens looking in, shareholder activism enables people to become concerned investors with a collective seat at the table. 

Activist investors can dial up the heat in the boardroom by advocating for policy change from within the organisation. Cool, right?

## Does activist investing really work? 

Sure - [shareholder activism](https://www.tulipshare.com/blog/how-does-shareholder-activism-work) sounds great in principle, but does it actually work?

At [Tulipshare](https://www.tulipshare.com/), we have achieved small steps towards several of our ambitious goals thanks to activist investing campaigns. We are in the process of demanding that [Johnson & Johnson](https://tulipshare.com/campaigns/JNJ) stop global sales of cancer-causing products, as well as fighting for Racial Equity at [Salesforce](https://tulipshare.com/campaigns/CRM). On top of these, we have several [people](https://www.tulipshare.com/categories/people), [planet](https://www.tulipshare.com/categories/planet), and [governance](https://www.tulipshare.com/categories/governance) campaigns that are well underway. We offer individual investors the opportunity to put their money where their mouths are and get involved in campaigns that will actually help bring about positive changes. While there’s a long way to go, collective activist investing is the wake-up call that unethical corporations have needed for decades. 

## How do I get involved? 

If you’re inspired to take action in some of the most important ethical issues of the age, you can join one of our activist investing campaigns today. [Sign up](https://www.tulipshare.com/signup) for a Tulipshare account and invest in a campaign that is close to your heart. We believe in the power of shareholder activism, and we know that our campaigns will bring about real change that wouldn’t have been possible in the not-so-distant past. 



How to Put Your Money Where Your Mouth is This Year 

Capital gain isn't the only return investors can earn. Here's a quick overview on what dividends are, the benefits of dividends and guide on how to evaluate dividend paying stocks to maximise returns!

Here's a quick overview on what dividends are, the benefits of dividends and guide on how to evaluate dividend paying stocks to maximise returns!

Blog - Building a Stock Portfolio - Dividends | Tulipshare

Before we get started, though, it’s important to know that we at Tulipshare are not financial advisors, and the content of this article is for informational purposes only.

**What is a dividend?**
A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock. Dividends are typically paid out of a company's profits and are distributed to shareholders on a regular basis, such as quarterly or annually. 

The amount of the dividend is typically determined by the company's board of directors and is based on the company's financial performance and prospects for the future. 

**Why do companies pay dividends?**
Here are four of the top reasons why companies may choose to pay dividends to their shareholders: 

- **To return value to shareholders:** One of the primary reasons companies pay dividends is to return value to their shareholders. By paying dividends, companies can distribute a portion of their profits to shareholders, who can then use the dividends as income or reinvest them in the company or other investments. 

- **To attract and retain investors:** Dividends can also be used as a way for companies to attract and retain investors. Companies that pay dividends may be seen as more stable and financially sound, which can be attractive to potential investors. Additionally, dividends can provide a steady stream of income for investors, which can be particularly appealing for those looking for a reliable source of income from their investments. 

- **To distribute excess cash:** Some companies may have more cash on hand than they need to meet their current business needs. In these cases, paying dividends can be a way for the company to distribute excess cash to shareholders rather than leaving it idle. 

- **To signal confidence in the company's future:** By paying dividends, companies can signal to the market that they are confident in their future prospects and are able to generate consistent profits. This can help to build investor confidence and potentially increase the company's stock price. 

It's important to note that not all companies pay dividends, and the decision to pay dividends is ultimately up to the company's board of directors. Factors such as the company's financial performance, growth prospects, and business needs may influence the decision to pay dividends.

**Where can shareholders find dividend announcements?**
Shareholders can typically find dividend announcements in a variety of places, including:

- **The company's website:** Many companies will post information about the dividends, including amount and payment dates on their corporate website.
 
- **Press releases:** Companies may also issue press releases announcing dividend payments. These releases can be found on the company's website or through financial news websites or other sources. 

- **Securities exchange :** Dividend announcements are also required to be filed with securities exchanges, such as the New York Stock Exchange or the NASDAQ. These announcements can be accessed through the exchange's website or through the exchange's website or through financial news websites that track this information. 

- **Shareholder communications :** Companies may also provide information about dividends in communications to shareholders, such as annual reports, proxy statements or other financial disclosures. 

It is important for shareholders to carefully review any dividend announcements and to confirm the payment details with their brokerage or other financial disclosures. 

**Different shares, different dividend payouts.**

The amount of dividends that a shareholder receives is typically based on the number of shares they own and the dividend rate, which is the amount of dividend per share. For example, if a company announces a dividend of $1 per share and an investor owns 100 shares they would receive a dividend payment of $100. 

Dividend rates can vary significantly from one company to another and may also vary over time for a single company. Some companies may pay higher dividends than others due to factors such as their industry, financial performance, and the overall stability of the company. In general, companies in mature industries with stable profits, such as utilities or consumer goods, may pay higher dividends than companies in more volatile industries, such as technology or pharmaceuticals. 

**How to evaluate dividend payout performances?**

There are several key metrics that investors can use to evaluate the dividend performance of a company: 

- **Dividend yield:**
The dividend yield is a measure of the amount of dividends a company pays relative to its stock price. It is calculated by dividing the annual dividend per share by the current stock price per share.  A higher dividend yield may indicate that the company is paying a larger portion of its profits to shareholders in the form of dividends. 
 
- **Dividend growth:**
Investors may also want to look at the company's history of dividend growth. Companies that consistently increase their dividends over time may be seen as more stable and financially sound. 

- **Dividend payout ratio:**
The dividend payout ratio is a measure of how much of the company's profits are being paid out in the form of dividends. It is calculated by dividing the annual dividends per share by the company's earnings per share. 
A higher payout ratio may indicate that the company is paying out a larger portion of its profits as dividends and may have less flexibility to reinvest in the business or weather economic downturns. 

- **Financial stability:**
It's also important for investors to consider the overall financial stability of the company. Companies that are struggling financially may have difficulty paying dividends or may need to reduce their dividends in the future. 

By examining these and other metrics, investors can get a better understanding of the company's dividend performance and how it compares to other companies in the same industry or sector. 

With investing tools such as [Bloomberg](https://www.bloomberg.com/uk), [CapitalIQ](https://www.spglobal.com/marketintelligence/en/) and [Yahoo Finance](https://uk.finance.yahoo.com/), accessing and comparing dividend performances of multiple companies is just a click away. 


Building A Stock Portfolio: How To Identify Dividend Paying Stocks 

We've launched a new campaign at Tesla asking Elon to tie his compensation package to ESG performance. 

Today we'll unpack Exchange-Traded Funds (ETFs) and Individual Savings Accounts (ISAs). They might sound complex and intimidating if you’re not familiar with investing, but it’s definitely worth learning about them. 

Read more about the what exactly ETF and ISAs are and why it's important for retail investors to know about them.

Blog - Investing Basics 101: What are ETFs and ISAs? | Tulipshare

**But before we get started it’s important to remember that we at Tulipshare are not financial advisors, and the content of this article is for informational purposes only.**

## What is an ETF?

ETFs are one of the most valuable tools for retail investors. ETF stands for Exchange-Traded Funds and an ETF is essentially an investment security that consists of a basket of companies.

### How does it work?

ETFs operate the same way a stock does. You may purchase from the stock exchange and trade it during the day, when stock exchanges are open. The prices fluctuate all day around, depending on the volume of buy and sell. However, it does not represent just one underlying company, as a regular share does.

So how many assets does it represent? Well, the possibilities are endless. Each ETF can consist from tens of companies all the way to thousands of companies, allowing for higher flexibility and diversification for investors. 

The first ever ETF that was created was the SPDR S&P 500 ETF ([SPY](https://www.investopedia.com/markets/quote?tvwidgetsymbol=spy)), which tracks the [S&P 500 Index](https://www.investopedia.com/terms/s/sp500.asp). There are now ETFs that track the Dow Jones and NASDAQ too. ETF's that track stock indexes are called Index ETF's. 

But you can group ETFs by industry or sector or through any theme, really; oil and gas, telecommunications, financial or pharmaceutical are all examples of types of ETFs. 

Alternatively, they can also be pooled by commodity, bonds, currencies, foreign markets, inverse and many more. 

### What's the appeal of ETFs?


**Diversification** 
Purchasing a single ETF diversifies your portfolio as it gives you access to multiple shares across different industries. 
**Flexibility** 
The choice is up to you. Do you want to only invest in S&P500 companies or companies within a specific sector? 
**Risk Management** 
With diversification comes lower risk, which can be appealing for investors with lower risk appetites. 

And the appeal appears to be widespread. In 2021, the amount of cash in ETFs was [$9.94 trillion](https://cfifinancial.com/en-cy/learn-to-trade/the-different-types-of-etfs), [tripling within the past 5 years](https://www.pwc.com/gx/en/financial-services/publications/assets/ETF_2026_PwC.pdf).
 
 

## What is an ISA?

Individual Savings Account (ISA) is pretty self-explanatory by name; it's a savings account. So what's special about an ISA? It all comes down to tax-free growth. 

In the UK, any growth you make through an ISA is tax free, up to £20,000. This includes a shield for any returns you gain from income tax, tax on dividends and capital gains tax. 

### How does an ISA work (what’s the catch)?

There are two main different types of ISA accounts: Cash ISAs and Stocks and Shares ISAs, but you can also invest in Lifetime and Junior ISAs. 

Cash ISA's are ultimately tax-free saving accounts. You earn interest in your savings and these returns will be tax free. 

Stocks and Shares ISAs is where instead of saving, you will be investing in stocks and shares. While there is potential for higher returns, there's also risk of your funds going down. 

A Lifetime ISA is to help you towards funding your first home and your retirement plan and a Junior ISA is for children aged 16 to 18 to save. 

Once again, the total allowance for 2022/2023 is £20,000. This can be fully invested in a single ISA or be split among your ISA of choice. It’s important to remember that, as with all investing, capital is at risk - meaning the value of your investments can go up as well as down.

Investing Basics 101: What Are ETFs and ISAs?

Check out our campaign for Apple to improve their repair policies

Thinking of punishing unethical companies by diverting your investments elsewhere? It might be time to think again. 

Blog - Why divesting doesn't work | Tulipshare

While it’s undoubtedly admirable to seek out companies with good [ESG standards](https://tulipshare.com/blog/what-is-ESG-investing) before investing your money, it isn’t enough to JUST invest in these ‘good companies’. In fact, even though billions of dollars are diverted towards more ethical companies every year, a [study](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3909166) has found that “ESG divestiture strategies have had little impact and will likely have little impact in the future.” 

The research illustrates one of the key dilemmas facing [ethical investing](https://tulipshare.com/blog/what-is-ethical-investing): should we punish unethical companies by pulling out and taking our money elsewhere, or stay active and drive change from within? The authors conclude: “Our results suggest that to have an impact, instead of divesting, socially conscious investors should invest and exercise their rights of control to change corporate policy.” 

This is a telling conclusion and is indicative of the widely held assumption that ethical investing falls short when it comes to achieving results. The fact that there is no framework for regulating ethical investing makes it extremely difficult to monitor progress and assess the positive impact of diverting funds from one company to another. There is also the issue of [greenwashing](https://www.investopedia.com/terms/g/greenwashing.asp), which is something that the world’s biggest polluters have mastered in recent years to drive attention away from their malpractice. 

So, if ethical investing in this form isn’t the answer, what is?  

## Introducing activist investing 

As Berk and Binsbergen - the authors of the above-mentioned study - point out, change needs to come from within. Rather than ditching stocks and investing elsewhere, activist investing is a viable alternative that enables you to leverage your shareholder power to achieve real, systemic change within the world’s largest companies. 

In recent years, some of the most eye-catching corporate change has resulted from activist investors. For instance, activist investment firm [Engine No. 1 won three seats](https://www.nytimes.com/2021/06/09/business/exxon-mobil-engine-no1-activist.html) on the board of Exxon Mobil in 2021, an achievement that has forced the company to listen to climate-conscious activists from within the company. 

At Tulipshare, we believe that everyone deserves the chance to invest their money to promote ethical change. Our activist investing campaigns prioritise social impact over short-term returns, and we are leveraging shareholder power to demand change in companies including [Apple](https://tulipshare.com/campaigns/AAPL), [McDonald's](https://tulipshare.com/campaigns/MCD), and [Coca-Cola](https://tulipshare.com/campaigns/KO). 

We invite everyday investors to come together to buy shares in these companies, and we then look to win a seat at the negotiating table. We firmly believe that activist investing is one of the most impactful ways of demanding and achieving the change our planet needs, so find out more about [how it works](https://tulipshare.com/how-it-works) today before making your next investment. 

Please remember that with investments, your capital is at risk - meaning the value of your investments can go up as well as down.







Why Diverting Funds Away From ‘Bad Companies’ Doesn’t Work

Although they’re steps in the right direction, Socially Responsible Investing (SRI) and Environmental, Social, and Governance (ESG) Investing aren’t enough if we want to see real change in the world.

ESG and SRI Investing aren't enough to create change

Socially Responsible Investing (SRI) and Environmental, Social, and Governance Investing (ESG) are only the first step. Learn about activist investing now.

Tulipshare looks at how activist investing has the potential to achieve the changes we all so desperately desire. 


### SRI & ESG Investing: What does it mean to invest ethically?

In recent years, it probably hasn’t escaped your attention that [ethical investing](https://tulipshare.com/blog/what-is-ethical-investing) has become somewhat of a buzz term in the financial sector. At its heart, ethical investing is the practice of buying shares within companies that align with your moral compass. Both SRI and ESG investing have made great strides to put discussions about ethical investing on the table, but we don’t think they do enough. Here’s why. 

### More action is required

The act of choosing to invest in more ethically minded companies is commendable, but it won’t help us achieve the widespread, systemic change we need to see. For companies to sit up and take notice of the damage they’re doing to the world; they need to be put under pressure. And at Tulipshare, we believe the best way to do this is through [activist investing](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism). 


### Is activist investing the solution?

Activist investing goes one step further than SRI & ESG, as it seeks out campaigns and identifies opportunities to make irresponsible companies more responsible, as opposed to disengaging with these companies altogether. Activist investors leverage shareholder power to drive change within these companies, and we have already seen some extraordinarily impressive results thanks to this innovative method of investing. 

At a company level, [Elliott Management](https://www.investopedia.com/top-10-activist-investors-in-the-us-5083258) has targeted 64 companies since 2017, spearheaded by Paul Singer. The company has leveraged its shareholder power to influence policy at the top end of global companies, including AT&T, Hyundai, and Softbank. Among others, they’re proving that activist investing can truly change the way that many of the world’s biggest companies behave. 

These examples illustrate the fact that when pressured from within the company itself, the largest corporations in the world have no choice but to listen and do something about it. We’re very much on the cusp of a new wave of investing, and we truly believe that activist investing is the solution that we’ve needed. 

### Want to get involved in activist investing campaigns?

The world is full of moral people who want to live on a more equitable and environmentally friendly planet. One of the best ways to bring about the change that so many of us desire is to collectively campaign against the malpractice of the corporations that can often go unchecked or unpunished. 

The team at Tulipshare is convinced that activist investing is the vehicle through which we can start to see real, systemic change within these corporations. 

If you want to join us and take the first steps towards investing in a more sustainable future for us all, we’d love to welcome you. Be sure to check out [our current campaigns](https://tulipshare.com/campaigns), or feel free to get in touch to propose something new for us to pursue in the near future. 


Why SRI and ESG Investing Aren’t Enough to Create Change

For many people, buying shares is not often associated with progressive change. However, here at Tulipshare, we like to do investing a little differently. 

From advocating for the rights of Amazon workers to improving the Apple repair service, our activist investing makes a difference. Explore on Tulipshare.

**Our activist investing ethos helps those committed to progressive change to invest in company stocks and leverage shareholder rights to make their voices heard. But how exactly do you buy shares and use them for change?**

### What is activist investing?

First things first, let’s go a little deeper into what activist investing is. Activist investing is the act of investing money into publicly traded companies and using your shares to influence how the companies are run. At [Tulipshare](https://tulipshare.com/), we’re bringing activist investing to retail investors, allowing you and other like-minded investors to buy shares in the companies targeted in our ESG-focused campaigns. By doing this, we can unify individual voices into a collective movement around a common goal, giving us a seat at the table to advocate for meaningful changes to company policy. We engage in direct dialogue with companies and submit and/or support related shareholder proposals which are then voted on at annual shareholder meetings. You can also read a little bit more in-depth about activist investing [here](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism). 

### How do I buy shares?

At Tulipshare, we strive to make buying shares super easy, in order to help as many investors jump on board with our campaigns as possible.

Investing on the Tulipshare platform starts by [signing up](https://tulipshare.com/signup) with a secure email and password while agreeing to our terms and conditions. In the next few steps, you’ll be asked to provide some personal information to allow us to conduct our onboarding and due diligence checks, as required by regulators.  After providing, you’ll be shown the [Tulipshare dashboard.](https://tulipshare.com/dashboard) This will be your hub for all things activist investing, presenting you with our latest campaigns and any extra help you might need. Once you’ve completed your registration, you can start uploading funds, converting them to USD, and start investing your money into our live campaigns.  You can also keep track of campaign updates by subscribing to our email newsletter, following one of our [social media accounts](https://twitter.com/tulipshare), or checking our [website](https://tulipshare.com/blog) for news. It really is as simple as that.

### What impact can I have?

When buying shares individually, your impact as an activist is limited, but when buying them with other like-minded investors, we can amplify your voice. Here are just a few examples of the campaigns we’ve been running so far:

#### [Apple](https://tulipshare.com/stocks/AAPL)

Every year the world throws away around [53 million tonnes of electronic waste](https://repair.eu/). One of our longest-running campaigns is to push Apple to adopt a fair and accessible Right to Repair policy that allows for and encourages customers to keep their devices and repair them.  

With nearly $40,000 invested behind our Apple campaign, Tulipshare now has enough shares to submit a shareholder proposal. Meanwhile, Apple have recently released their first ever Self Service Repair Program, but [we have identified gaps](https://tulipshare.com/blog/apple-self-service-program-still-misses-the-mark) within the new program that still need to be addressed. We are currently in conversations with Apple’s IR team and plan to continue to engage and press for further improvements to its repair service. 

#### [Amazon](https://tulipshare.com/stocks/AMZN)

There have been continuing reports of Amazon warehouse workers being subjugated to [unsafe working conditions](https://www.nbcnews.com/business/business-news/amazon-worker-deaths-tornados-raise-questions-tornado-training-cellpho-rcna8570). 

Our activist investment campaign is attempting to ensure safe and fair working conditions for Amazon warehouse workers. With over $10,000 invested and 2,442 people interested, we’re well on the way to advocating for Amazon warehouse workers on your behalf.

Remember - if you have a new campaign idea for a cause you’re particularly passionate about, don’t hesitate to shoot a suggestion our way. Whether it’s improving the state of our oceans or improving the treatment of employees in certain corporations, we would love to hear about any new ideas you have in mind.

Ultimately, redefining how people invest their money is what Tulipshare is all about. If you’re looking to make a meaningful impact on the world and push towards progressive change, sign up with Tulipshare today. Complete your registration and you can even get a free £10 to invest in a campaign of your choice!



How to Buy Shares in a Company and Use Them for Change 

Our fight for fair and safe warehouse working environments at Amazon has not ended!

Is it better to be an active or passive investor? We’re here to discuss!

Is it better to be an active or passive investor? Read more to see which is better and what tools are out there for different investors!

Blog - Active vs. Passive Investing | Tulipshare

*Before we get started, though, it’s important to note that we at Tulipshare are not financial advisors and the content of this article is for informational purposes only.*


**What is active investing?**

Active investing is a strategy where an investor actively selects individual investments for their portfolio, rather than using a passive investment strategy such as index fund investing. Active investing can involve researching and analysing different investments, making buy and sell decisions based on that analysis, and regularly monitoring the portfolio to make adjustments as needed. Active investors may seek to outperform a market index or benchmark, and may use a variety of investment vehicles such as stocks, bonds, and mutual funds.

**What is passive investing?**

Passive investing is a strategy where an investor seeks to match the performance of a particular market index or benchmark, rather than actively selecting individual investments or trying to outperform the market. This can be done through the use of passive investment vehicles such as index funds, which are investment funds that hold a diversified portfolio of securities that tracks the performance of a specific market index. 

The S&P 500 Index, Dow Jones Industrial Average Index, and Nasdaq Composite Index are three indexes that include major US stocks. Many other businesses, like Vanguard and Fidelity, frequently follow these indices. For instance, the performance of the S&P 500 is tracked by the Vanguard S&P 500 ETF, and the performance of the Fidelity US Large Cap Index is tracked by the Fidelity ZERO Large Cap Fund. These can be purchased through a brokerage account (if offered by the provider).

The goal of passive investing is to achieve a long-term return that is similar to the overall market, rather than trying to beat the market through active stock picking or market timing. Passive investors typically have a buy-and-hold approach, and do not make frequent trades. This can result in lower investment costs, as there are no trading fees and the expense ratios of index funds are often lower than those of actively managed funds.

**Tools for passive investors?** 

There are several types of passive investment tools that investors can use for their passive investment strategies: 

- Index funds: These are investment funds that hold a diversified portfolio of securities that tracks the performance of a specific market index. 
- Exchange-traded funds (ETFs): These are investment funds that are listed on an exchange and can be bought and sold like individual stocks. Like index funds, ETFs typically track the performance of a specific market index. To learn more about ETFs, check out our previous [blog](https://tulipshare.com/blog/intro-to-etf-and-isa)!
- Mutual funds: These are investment funds that pool together the money of many investors and use that money to buy a diversified portfolio of securities. Some mutual funds are actively managed, but there are also passively managed mutual funds that track a specific market index. 
- Dividend reinvestment plans (DRIPs): Some companies offer DRIPs that allow investors to automatically reinvest their dividends into additional shares of the company's stock, rather than receiving the dividends in cash. 
- Robo-advisors: Robo-advisors are digital platforms that employ algorithms to build and manage investment portfolios in accordance with the particular objectives and risk tolerance of an investor. To apply a passive investment strategy, they frequently use ETFs and index funds.

It is crucial to keep in mind that not all trading platforms provide these choices. While some may specialise in a certain asset, most frequently stocks and ETFs, others could provide clients with a different combination of options. 

Additionally, fees will change based on the service and product. Fees for index funds and ETFs are frequently cheaper than those for mutual funds as products' trading fees, load fees, administration fees, and other costs vary. As a result, always conduct research before buying a certain financial instrument, and always determine the break-even point. For further information, you can always visit the "Fees" section of the websites for each trading platform or reference third-party, independent reviewers like [Broker Chooser](https://brokerchooser.com/compare) or [StockBrokers.com](https://uk.stockbrokers.com/guides/share-dealing-accounts).

**Notes for active investors**

Active investing can be used as a means of environmental, social, and governance (ESG) investing by:

**Engage with companies, push for change!**

Another way that active investing can be used for ESG purposes is by  engaging with the companies you invest in. This can mean voting at shareholder meetings, discussing ESG issues  with company management, and possibly filing shareholder resolutions, if you meet the criteria. The goal of this approach is to use your influence as a shareholder to improve the company’s ESG reporting and performance.

**Divest from companies with poor ESG**

Investors can choose to seek out companies with strong ESG practices and also actively avoid (or divest) from companies with poor ESG records. The divesting approach involves careful research to understand which stocks or bonds truly align with the investor's ESG values.

However, divestment also means you lose the chance to engage with a company or influence their governance around ESG issues, potentially meaning less accountability for their management and less incentive to improve their ESG credentials. 

Overall, active investing can be an effective way to build an investment strategy which is highly focused on ESG as active investing allows the investor to have more control over the specific holdings in their portfolio and to take a more proactive role in promoting ESG practices for the shares they own.

So are you a passive or active investor? 


What Does It Mean to Be an Active or Passive Investor?

Ethical and activist investing have emerged as two methods of moral investing. But what are ethical and activist investing and how do they differ?

Ethical investing is the future of activism, allowing shareholders to advocate for change within corporations. Discover moral investing on Tulipshare.

### What is ethical investing?

Otherwise known as socially responsible investing, ethical investing is generally defined as buying shares in corporations or companies that align with your own moral beliefs. For instance, those committed to ethical investing would likely avoid investing in tobacco companies or corporations that have connections to the industry. 

Furthermore, if you think that guns are a danger to society, you probably wouldn’t invest your money in gun manufacturers.  Amazon is another example of a company that some investors have moral qualms about, for a myriad of reasons.

### Why is ethical investing not enough to drive change?

While ethical investing can make a positive impact, we believe it doesn’t do enough to truly drive the kind of vital change that’s needed. While it’s great to support more climate-conscious and ethical companies, what about reforming the companies that foreseeably aren’t going anywhere and have a large impact on our society and planet?

At Tulipshare, we believe the key to meaningful change lies in shareholder activism. That’s where activist investing comes in. 

### How does activist investing differ?

As opposed to the passive act of refusing to buy shares in specific companies, activist investing looks to leverage shareholder power to drive change. Activist investing is all about direct action, in contrast to the passive nature of ethical investing. Activist investing has the potential to effect real change, even within the largest corporations. [Tulipshare](https://tulipshare.com/) is a platform that helps those looking to bring about change to get investing. As a relatively new platform, we’ve spearheaded our efforts into four initial campaigns targeting Apple, Amazon, Coca-Cola and JPMorgan Chase. Tulipshare aims to work from within by leveraging our community’s collective shares and lobbying for change. 

For example, Tulipshare started [a campaign](https://tulipshare.com/stocks/AAPL) to push Apple to adopt a fair Right to Repair policy.   With $44,947 invested in shares by Tulipshare and our community , we are currently talking to Apple’s IR team about our concerns and to put this on the corporation’s roadmap. It doesn’t end there though - the more investors we have, the more leverage we have to engage directly with Apple. 

### Want to get involved? Here’s how!

If one of our campaigns interests you, simply create an account and you’ll get access to the [Tulipshare dashboard](https://tulipshare.com/login?returnUrl=%2Fdashboard). This is where you’ll see all of your investments (once made) and the progress of our campaigns. However, before you start investing, it’s time to complete your registration. This process allows us to verify your identity and meet our regulatory requirements for onboarding. 

Ultimately, if you want to drive change in corporate structure, activist investing can be an impactful method. Remember - if you have a campaign idea, don’t hesitate to send it our way! We’re always open to hearing about the causes Tulipshare investors are most passionate about.


What is Ethical Investing?

Our Coca-Cola campaign aims to cut plastic pollution in a big way

Your money is your voice, so this week we'd like to highlight the people who are using their money - and voices - for good. 

Blog - Tulipshare's Guide to Good Billionaires | Tulipshare

If you open the news, there is no shortage of stories about people and corporations hurting our society or environment in some way, be it misuse of our data, contributing to climate change, or even use of modern slavery for capital gains. It almost gives the impression that the only way for a corporation to grow or a person to gain wealth is through these unsavoury methods. However, Tulipshare would like to highlight the fact that things can be done right, and there are plenty of examples. 

A few are outlined below as we present our Guide to Good Billionaires:

## Yvon Chouinard  

For most people, becoming a billionaire is a life-long dream. However, as the [Guardian](https://www.theguardian.com/global/2022/sep/15/yvon-chouinard-the-existential-dirtbag-who-founded-and-gifted-patagonia) highlights, this was not the case for Yvon Chouinard. When he made it onto Forbes’ list of World’s Richest Men in 2017, he was “really, really pissed off,” and set off on a path to give away his company, Patagonia. 

More recently, he has achieved that goal. In a message to staff and customers, he has said, ““Earth is now our only shareholder. Instead of ‘going public’, you could say we’re ‘going purpose’. Instead of extracting value from nature and transforming it into wealth for investors, we’ll use the wealth Patagonia creates to protect the source of all wealth.” 

With this move, Chouinard has not only managed to donate large sums of money to charity, he has ensured that the company he built and initially earned his billionaire status from is now a purpose-led company working to protect our environment. 


## Chuck Feeney

Several billionaires have a goal to donate all their money after their death. Few have the goal to donate it all during their lifetime. If you want someone who has [actually managed to achieve this](https://www.theguardian.com/business/2020/sep/19/billionaire-chuck-feeney-achieves-goal-of-giving-away-his-fortune), look no further than Chuck Feeney, who made his billions through his Duty Free Shoppers Group.

In 1982, he secretly set up The Atlantic Philanthropies Foundation and transferred almost all his money to it. He then spent 38 years donating all that money to charities and universities in an attempt to give it all away. In 2020, he finally achieved that goal. The foundation ran out of money and was then dissolved.

His philosophy on giving all his money away while he was still around was to be able to witness the impact it would make. In his own words, “what is all that wealth about if you’re not going to do good with it?” 


## Yu Pengnian

The idea of a self-made billionaire is an inspiration to many. Yu Pengnian is one such - he went from working as a [prisoner in a labor camp](https://www.inc.com/geoffrey-james/unlike-bill-gates-3-billionaires-gave-it-away-while-alive.html) to becoming a Hong-Kong real estate magnate. However, that is not the only reason his story is inspiring; he gave all his money away.

His entry into wide-scale philanthropy began when he developed eye cataracts and had a successful operation to remove them. Research afterwards showed him that 400,000 Chinese people developed cataracts every year, and many could not afford to have them removed. Subsequently, he decided to spend $10-million annually to send mobile cataract clinics to the remotest parts of China to perform surgeries paid for by himself.

Since that incident, he began giving to many causes, including student scholarships and rebuilding infrastructure after natural disasters. In 2008, he [donated his last $500 million](https://www.theglobeandmail.com/news/world/chinese-philanthropist-donates-it-all/article1389631/). "This will be my last donation," he announced. "I have nothing more to give away." 

## Sylvia Bloom

Our last entrant isn’t technically a billionaire, but her story is so heart-warming that it deserves a mention. Sylvia Bloom worked as a legal secretary for sixty-seven years and quietly amassed a fortune along the way. In fact, even her closest friends and relatives had no idea that she was secretly becoming a millionaire.

“She was a secretary in an era when they ran their boss’s lives, including their personal investments,” [recalled](https://www.nytimes.com/2018/05/06/nyregion/secretary-fortune-donates.html#:~:text=Sylvia%20Bloom%2C%20a%20legal%20secretary,%248%20million%20for%20college%20scholarships.) her niece Jane Lockshin. “So when the boss would buy a stock, she would make the purchase for him, and then buy the same stock for herself, but in a smaller amount because she was on a secretary’s salary.”

It wasn’t until after Sylvia’s death when her will instructed that $8million be left to various college scholarships for disadvantaged students that anyone really learned she was a millionaire in the first place. 

Despite her fortune, Ms. Bloom lived in a modest, rent-controlled apartment in Brooklyn with her husband, a retired fireman-turned-school teacher. She always insisted on taking the subway and never talked about money or accepted gifts. Thanks to her selflessness, thousands of disadvantaged students have access to better education.


Tulipshare’s Guide to Good Billionaires

Join us in asking McDonald's to rethink their plastic packaging

Gone are the days when campaigners needed to stand on the street with placards to make their voices heard. Instead, activist investing enables campaigners to use the stock market to influence policy at companies around the world. Here’s how it works. 

Why should campaigners care about the stock market? Find out on Tulipshare's blog.

Blog - Why Should Campaigners Care About the Stock Market? | Tulipshare

## Why is the stock market so important? 

The [roots of the stock market](https://www.investopedia.com/articles/07/stock-exchange-history.asp) can be traced back to Venetian money lenders in the 1300s before the first official exchange was established in Belgium in the 1500s. Since then, the stock market has played an integral role in economies and, therefore, countries worldwide. The fundamental role of the stock market is to enable publicly listed companies to generate capital for their expansion. Without stock markets, companies would have to turn to financial institutions to raise the capital required for growth. 

But individuals also benefit from the stock market. Astute investments in the right companies can yield a significant return on an initial investment. In fact, the average stock market return on the S&P 500 over the course of the last century is [10%](https://www.nerdwallet.com/article/investing/average-stock-market-return) per year, before inflation. (However, it’s worth noting that this is based on a past performance and does not guarantee future results) As such, the stock market doesn’t only enrich some of the largest companies on the planet, it also provides individual investors with the opportunity to see significant returns on their investments. 

## What does this mean for campaigners? 

Societal campaigners are integral to the way the world works. Be it civil rights or climate justice campaigns, the collective voice of the people is crucial when it comes to influencing government or corporate policy that often puts profit and self-interest above all else. While campaigners often make their voices heard through peaceful (and in some instances, violent) protests, there’s another way to campaign for change - **economic protest**. 

As mentioned, the stock market is the primary way in which the world’s largest companies raise capital to fund their growth and expansion. In exchange for capital, companies provide investors with a vote to be cast at the annual shareholder meeting to shape company policy. Typically, most investors who own shares of common stock are entitled to one vote per share. Theoretically, if campaigners were to amass a sufficient number of shares within a company, they could potentially influence policy from within, and the company would have no choice but to listen and take action. 

## How can campaigners influence the stock market? 

Rather than standing outside the corporate offices of a company with placards and megaphones, campaigners can now ‘get inside’ the building. Activist investing enables campaigners to collectively buy shares in a company, which platforms such as Tulipshare can then use to shape policy and drive change by casting their votes. At Tulipshare, we have launched campaigns to influence policy at the likes of [Coca-Cola](https://www.tulipshare.com/stocks/KO), [JPMorgan](https://www.tulipshare.com/stocks/JPM), [Apple](https://www.tulipshare.com/stocks/AAPL), and [Amazon](https://www.tulipshare.com/stocks/AMZN). By leveraging the collective shares of our investor community, we initiate conversations with the company to promote ethical and sustainable change from within.

We believe in the incredible power of activist investing and are confident that it will alter the landscape of campaigning for years to come. For more information about how activist investing works and how campaigners can use the stock market to their advantage, check out our [blog](https://www.tulipshare.com/blog) and learn about the possibilities of ethical investments. 

Why Should Campaigners Care About the Stock Market?

It's time for AT&T to align its political spending with its corporate principles. 

Here's a snapshot of Tulipshare campaigns with the highest paying dividends. Hint : It is not Apple, Amazon, Microsoft or Tesla!

Read more to find out Tulipshare campaigns with the highest paying dividends. Hint : It is not Apple, Amazon, Microsoft or Tesla!

Blog - Our Highest Dividend-Paying Stocks in 2022 | Tulipshare

Did you know that when you invest in shares you could potentially earn [dividend](https://tulipshare.com/blog/how-to-identify-dividend-paying-stocks) income? 

In this article we take a look at which of our campaigns would have earned you the highest dividends if you’d invested in all of our campaigns in early 2022.

Before we get started, though, it’s important to know that we at Tulipshare are not financial advisors, and the content of this article is for informational purposes only and past performance is not an indicator of future performance. Keep in mind that, when investing, your capital is at risk - meaning your investment can go up as well as down.

Here are the top 5 campaigns with the highest dividend yield in 2022. 

Not sure what a dividend is? Check out [our blog article](https://tulipshare.com/blog/how-to-identify-dividend-paying-stocks) which explains. 

**[1. AT&T (NYSE: T)](https://tulipshare.com/campaigns/t)**


AT&T (American Telephone and Telegraph) is a telecommunications giant based in Dallas, Texas. It is the second biggest supplier of mobile telephone services in the United States and the largest provider of landline telephone services. The firm was started in 1885 and has since expanded to provide a variety of services such as television, internet, and smart home solutions. 

In 2022, AT&T saw a **6.03%** dividend yield, the highest among all Tulipshare campaigns with [$1.11](https://www.nasdaq.com/market-activity/stocks/t/dividend-history) dividend paid for each share held (currently trading at $19.21 at the point of writing). However, it is also important to note that the dividend paid in 2022 is a **46.63% decrease** from the dividends paid in 2021 ($2.08 paid to shareholders in 2021). 

**Our campaign to improve AT&T:** At Tulipshare, we're asking AT&T to stop funding anti-ESG policies. AT&T's declared corporate principles aren’t always aligned with its political and electioneering spending. AT&T's publication of a report analysing their political and electioneering spending is a critical step towards correcting this imbalance. Check out the full campaign [here](https://tulipshare.com/campaigns/t).


**[2. Dow Inc (NYSE : DOW)](https://tulipshare.com/campaigns/dow)**


Dow Inc. is a publicly listed global chemical firm based in the United States. The firm is based in Midland, Michigan, and it specialises in advanced materials, specialised chemicals, and performance goods. The corporation is involved in a variety of industries, including infrastructure, transportation, consumer products, and agriculture.

In 2022, Dow Inc saw a **5.56%** dividend yield, which brings it to second place in our list by a very narrow margin -  with a [$2.80](https://www.nasdaq.com/market-activity/stocks/dow/dividend-history) dividend paid for each share held (currently trading at $56.84 at the point of writing). It is crucial to note that there is a **0% dividend growth** from the dividends paid in 2021 (the same [$2.80](https://www.nasdaq.com/market-activity/stocks/dow/dividend-history) paid for each share held in 2021). 

**Our campaign to improve Dow:** Dow Inc was recently named as the world's second largest manufacturer of SUP-bound polymers, which can be turned into any single-use plastic, from candy wrappers to bottles to artificial Christmas trees. However, plastic is a concern for the environment, as well as for Dow and its stockholders and that is why we partnered with *As You Sow* to request that Dow's Board of Directors publish an audited report outlining its strategies to address the plastic pollution problem. Check out the full campaign [here](https://tulipshare.com/campaigns/dow).

**[3. Philip Morris International Inc (NYSE : PM)](https://tulipshare.com/campaigns/pm)**

Philip Morris International Inc. (PMI) is a tobacco multinational headquartered in Stamford, Connecticut. It was founded in 1847 and is best known for its flagship brand of cigarettes, Marlboro. PMI is one of the world's major tobacco corporations, with operations in over 180 countries. Marlboro, L&M, Bond Street, Chesterfield, and Philip Morris are just a few of the brand names used by the corporation. 

In 2022, PMI saw a **4.96%** dividend yield, coming third among all Tulipshare campaigns with a [$5.02](https://www.nasdaq.com/market-activity/stocks/pm/dividend-history) dividend paid for each share held (currently trading at $99.98 at the point of writing). There is also a minor **3.51%** dividend growth from the dividends paid in 2021 ([$4.85](https://www.nasdaq.com/market-activity/stocks/pm/dividend-history) paid to shareholders in 2021). 

**Our campaign to improve PMI**:  We’ve joined forces with As You Sow in asking Philip Morris to drive robust diversity and inclusion action to ensure they're bringing in the perspectives, voices, and abilities that have been proven to result in better decision-making and even more empathy for the customers it sells to makes sense. Check out the full campaign [here](https://tulipshare.com/campaigns/pm).


**[4. Ford (NYSE : F)](https://tulipshare.com/campaigns/f)**

Ford is one of the world's oldest and largest automobile manufacturers, manufacturing iconic models such as the Mustang, the F-150, and the Taurus. The corporation has a long history of invention, and it was the first to employ assembly line production for mass manufacture of automobiles, which substantially decreased the cost of automobiles and made them affordable to the ordinary consumer.

In 2022, Ford saw a **4.30%** dividend yield, which puts it at forth place on our list, with [$0.50](https://www.nasdaq.com/market-activity/stocks/f/dividend-history) dividend paid for each share held (currently trading at $12.20 at the point of writing). It is crucial to note that it saw a whopping **400%** dividend growth from the dividends paid in 2021! (only [$0.10](https://www.nasdaq.com/market-activity/stocks/f/dividend-history) paid to shareholders 2021). 

**Our campaign to improve Ford:** Also partnered with As You Sow, we're asking Ford to improve their diversity, equity and inclusion disclosures. We want to make sure Ford has a workforce as diverse as the country that brought it to life. Workforce diversity has also been shown to lead to better company performance - making it all the more beneficial for shareholders. Check out the full campaign [here](https://tulipshare.com/campaigns/f).


**[5. United Parcel Services Inc (NYSE : UPS)](https://tulipshare.com/campaigns/ups)**

United Parcel Service, Inc. (UPS) is a global package delivery and logistics company based in the United States. Founded in 1907, UPS operates in over 220 countries and territories, providing delivery services for a wide range of items, including packages, letters, and freight. The company's primary business is its package delivery operation, which involves sorting, transportation, and delivery of parcels and documents around the world. In addition, UPS also offers supply chain solutions, freight forwarding, and e-commerce services to its customers. As of 2022, UPS surpassed FedEx as the [largest](https://www.forbes.com/sites/kevindowd/2022/05/12/the-worlds-largest-transportation-companies-2022-ups-passes-fedex-for-the-top-spot/) transportation company in the world while simultaneously surpassing [$100 billion](https://investors.ups.com/news-events/press-releases/detail/2087/ups-releases-4q-2022-earnings#:~:text=Full%2DYear%202022%20Consolidated%20Results&text=Operating%20profit%20of%20%2413.1%20billion,on%20invested%20capital%20was%2031.3%25.) consolidated revenue in the fourth quarter of 2022. 

In 2022, UPS saw a **3.50% dividend yield**, coming fifth among all Tulipshare campaigns with [$6.08](https://www.nasdaq.com/market-activity/stocks/ups/dividend-history) dividend paid for each share held (currently trading at $178.46 at the point of writing). There is also a massive **49.02%** dividend growth from the dividends paid in 2021 ([$4.08](https://www.nasdaq.com/market-activity/stocks/ups/dividend-history) paid to shareholders in 2021). 


**Our campaign to improve UPS**: With a workforce of over 500,000 individuals, UPS holds a significant responsibility to foster diversity, equity, and inclusion within its ranks. However, the absence of information on these crucial aspects of the company's operations not only undermines its overall health but also impacts society as a whole. Thus, similar to Ford, we have partnered with As You Sow to seek a report by UPS to report on the effectiveness of their diversity, equity and inclusion efforts in hiring, retention, and promotion of employees by gender, race, and ethnicity. Check out the full campaign [here](https://tulipshare.com/campaigns/ups)


*Annual dividend yields have been calculated based on the dividends paid in 2022 and closing share price on 30 December 2022.*


Top 5 Dividend-Paying Tulipshare Campaigns in 2022

See how we're trying to increase transparency at Microsoft

I'm finally going to start investing! How do I prepare myself for it? Are there any tools out there to kickstart my journey? 

Here are the top four resources we recommend for first time investors.

Blog - Investing Basics 101: Buying Your First Share | Tulipshare

Yes! But before we start, please note that we at Tulipshare are *not financial advisors*, and the content of this article is for informational purposes only. 

That being said, it can be quite intimidating when you want to press your first "BUY" on a share. "Is this the right share?", "Did I miss any information on the stock?". These questions can cloud your head and by the time you feel ready to make a move, the trading day has closed. 

To ease your fears around taking that first step, we've summarised the top four resources for first time investors. 

## Courses to learn about investing

The first hurdle every new investor has to overcome is to equip themselves with sufficient knowledge on the basics of investing. This includes terminologies, concepts and finally, strategies. 

[Female Invest](https://femaleinvest.com/) is an e-learning platform developed by women on a mission to close the financial gender gap. Building a community to empower thousands of women interested in financial literacy to their independence. The Y-Combinator backed company helps members to be equipped with knowledge and confidence through content and webinars. 

Alternatively, there are online free resources such as [Investopedia](https://www.investopedia.com/), a bible for every investor. With countless and endless hours of content to your disposal, Investopedia has every detail and information covered on Finance, Accounting, Investing and Economics. From simple definitions, to chart indicators, trading simulators and complex articles and journals. 

## Stock charts and news updates

As much as theoretical knowledge is important, practical and real-life updates play a huge part when investing in order to track the performance of the companies that you are interested in and make technical analysis. 

Websites such as [Bloomberg](https://www.bloomberg.com/), the [Financial Times](https://www.ft.com/), [Morningstar](https://www.morningstar.co.uk/uk/), [Google Finance](https://www.google.com/finance/?hl=en) and [Yahoo Finance](https://uk.finance.yahoo.com/) provide fundamental news updates for companies all across the globe. In addition to those, they also provide analytical data regarding stock prices, stock information and related historical data. With this information, users are able to build their own watchlist and portfolios. 

If you feel confident with your analysis and research but not yet ready to trade, you can also opt to participate in trading simulations (paper trading). Such tools are offered by [Investopedia](https://www.investopedia.com/simulator/), [Female Invest](https://femaleinvest.com/en-GB) and the [London Stock Exchange](https://www.londonstockexchange.com/exchange/user/registration.html?execution=e1s1). As the saying goes, practice makes perfect. 

## Financial reports and statements 

If you're looking to read the reports companies file to the Securities Exchange Commission (SEC), [EDGAR ](https://www.sec.gov/edgar/searchedgar/companysearch)is the place for you. EDGAR stands for Electronic Data Gathering, Analysis, and Retrieval. This website contains thousands, if not millions of company and individual public filings and disclosures. Just type in the company name or ticker, all the rest is a click away. 

This database being public benefits investors and corporations by increasing the efficiency, transparency, and fairness of the securities markets, which in turn can help inform investors when making decisions about where to invest. While it may be overwhelming, here are the [list of forms available](https://www.sec.gov/forms). Each form contains different information: for instance, the N-PX form containing the proxy voting record.

## Company updates

Alternatively, if you find EDGAR overwhelming, you can simply look at the websites for companies you’re interested in investing in - typically they will have a section dedicated to investor relations. The investor relation page is often equipped with information such as the stock prices and charts, financial reports, earning releases, events, shareholder meeting details, sustainability reports and other disclosures. 

You may wonder how reliable the data is when it comes straight from the company directly, and that’s a fair question. Information on the investor relations pages are often presented in a positive light, but it’s a good starting point nonetheless, especially as the company writes with the average individual in mind, often making their analysis easier to digest than pages of formal documents from EDGAR. Whilst it’s a good place to start, it’s always wise to cross check your research.

**In summary: Sure getting started might take a little research and time to understand, but there have also never been more resources at our disposal. The key is to keep reading and stay informed!** 


Investing Basics 101: Four Favourite Resources For First Time Investors

A retail investor is someone who invests money in the stock market as a non-professional.

As the stock market becomes increasingly easy to access, numbers of retail investors have also increased. Find out the effects of this on Tulipshare.

In recent years, retail investors have increased in number and had more of an impact on the global stock market, which is great news for activist investors, as we explore below.

## What is a retail investor?

Anyone who buys stocks, shares, or bonds is considered a retail investor, providing they don’t do it for a living. In most instances, retail investors utilise various brokerage apps to conduct their transactions or invest money in stocks via their pensions.

[Research](https://www.reuters.com/article/us-retail-trading-numbers-idUSKBN29Y2PW) suggests that there are more than 100 million retail investors worldwide, using platforms including Fidelity, Vanguard, Schwab and Robinhood to make their investments. [Tulipshare](https://www.tulipshare.com/) is also a retail investment platform. 

2020 was a huge year for retail investors, as individuals made up approximately [19.5%](https://www.investopedia.com/2020-was-a-big-year-for-individual-investors-5094063) of the entire U.S. equity trading volume. In the U.K., [13.5%](https://freetrade.io/retail-investors) of shares are owned by individuals. One of the primary reasons why retail investing has become so popular today is the greater accessibility to the market, as apps and various technologies have made it easier than ever for ordinary people to invest their money.

## What does retail investing look like in the U.K.?

Approximately [one in three Brits](https://www.finder.com/uk/investment-statistics) currently own shares. Interestingly, there was a sharp rise in share ownership in the period between 2018 and 2020, as more people became aware of the user-friendly nature of the latest technologies that facilitate retail investing. 

People in the U.K. are motivated to invest in stocks and shares as a direct result of the poor interest rates given by banks, as well as the opportunity to earn dividend income. Around [27%](https://www.finder.com/uk/investment-statistics) of Brits who invest in the stock market have been motivated to do so because they want to invest in ethical companies. 

Thanks to the prevalence of various platforms - like [Tulipshare](https://www.tulipshare.com/) - it’s never been easier for retail investors to invest their money in alignment with their values, as we explain below. 

## Retail & activist investing - a wonderful opportunity to make a difference 

At Tulipshare, we provide a platform for retail investors to become [activist investors](https://www.tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism). Activist investing is the practice of leveraging shareholder influence to change the way companies do business. In Tulipshare’s case, we are concerned with driving ethical and sustainable change within companies.

So far, our campaigns include pushing [JP Morgan](https://www.tulipshare.com/stocks/JPM) to restrict their investments in fossil fuels, as well as better working conditions for [Amazon](https://www.tulipshare.com/stocks/AMZN) employees. We’re seeing retail investors buy shares and support campaigns like these which seek to bring about positive change in the world - something we can all buy into.

As more retail investors are likely to enter the market - [two-thirds of Brits](https://www.finder.com/uk/investment-statistics) have said they are likely to invest in shares in the near future - activist investing has the best possible chance of making a significant positive difference in the world. 

It’s no secret that the world’s largest corporations aren’t doing enough to tackle the issues of our age, which is why we invite you to join us in putting pressure on them to do the right thing. Visit [Tulipshare](https://www.tulipshare.com/how-it-works) today to find out more about how activist investing works, and check-in with our current campaigns to see how you can make a difference.


What is a Retail Investor? 

Did You Know Our Campaign at Apple Has Changed?

“I've always heard of stock indexes and exchanges like NYSE, S&P 500, Dow Jones. What in the world are these and why are there so many?”

Confused about stock exchanges and stock indexes? Read to learn about stock exchanges and stock indexes and how they are different.  

Blog - Investing Basics 101: Intro to US Stock Exchanges | Tulipshare

Does that sound like you?

We get it - all these terms can be quite complex and confusing for new and first time investors. We've made it simple for you to understand stock exchanges and stock indexes and the differences between the two. 

Simply put, **stock exchanges** are a place where investors can buy and sell shares. **Stock indexes** indicate how a group of companies are performing within a specific market or sector.

## Stock Indexes

Stock indexes are the measures of the overall performance of groups of companies. These groupings can be done by numerous categorisation methods such as by sectors or market capitalisations. 

You might have already heard about the Standard and Poor's 500 (S&P 500) and Dow Jones Industrial Average also known as the Dow. These are just two examples of stock indexes, among the more than 5000 more indexes available to investors. Here's what you should know about the top 3 stock indexes.
	
## The Standard and Poor's 500 (S&P 500)

The S&P 500 is a stock index which is weighted by market capitalisation. This means that the value of the index directly correlates with the market capitalisation of the 500 companies it consists of. So, if the market value of the 500 companies rose by 15%, then the value of S&P 500 goes up by 15%. 

You might have always noticed that the S&P 500 is often used as the performance indicator of the whole US market. That’s down to the fact that this index consists of the **top 500 performing companies in the US** which represents 80% of the market value. 

## The Dow Jones Industrial Average

On the other hand, the Dow Jones Industrial Average (The Dow) is a price-weighted index. Unlike the S&P 500, the value of this index is based on the price per share of the 30 companies it consists of. Although these 30 companies are blue chip companies (meaning they have a reputation for quality, reliability, and the ability to operate profitably) that represent 25% of the market, the Dow is generally not used as a performance indicator of the market. 

This is because it’s a price-weighted index, so the more expensive the share is, the greater its effect on the value of the Dow. As such, the Dow is typically used to try and understand investors expectations in blue chip companies - or stable, long-lasting companies - rather than a performance indication of the whole market.


## Stock Exchanges

Stock exchanges are places where investors can buy or sell shares. While you might be familiar with the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations Stock Market (NASDAQ) , there are a total of 13 stock exchanges, 12 of which are run by Intercontinental Exchange Inc, Nasdaq Inc and Cboe Global Markets. 

At point of writing, NYSE, the biggest exchange in the world, accounts for $23.02 trillion in market capitalisation. This is followed by NASDAQ with 19.3 trillion in market capitalisation, almost triple from Shanghai stock exchange which comes third with 7.5 trillion market capitalisation.

While both facilitate the trading of shares for investors, NYSE, headquartered in Wall Street, provides both electronic and live person trading whereas the Manhattan based NASDAQ is 100% electronic trading. 


**Next week we’ll be discussing ETF’s and ISA’s. Don’t know what those are? Well then, we’ve written this series with you in mind!**


Investing Basics 101: Intro to US Stock Exchanges

Now more than ever, consumers are concerned about how businesses are affecting the environment and social wellbeing of our world. 

# What is ESG Investing?

Now more than ever, consumers are concerned about how businesses are [affecting the environment and social wellbeing of our world](https://www.bcg.com/en-gb/publications/2020/sustainability-matters-now-more-than-ever-for-consumer-companies). As a result businesses have defined a way to measure impact using what’s known as ESG. 

ESG stands for 'Environmental, Social, and Governance,' and companies often evaluate their impact in these areas through an ESG rating.

Even though public companies aren’t obligated to report these scores, they know that these ratings could woo potential investors and portfolio managers, particularly those who want to invest their money more ethically. This process of using ESG to decide how to invest is known as ‘ESG investing.’

## How is ESG measured?

Using a company's ESG rating as a guide to inform '[activism investing](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism)' seems straightforward. However, there are still a lot of grey areas that need addressing. For instance, there is no standardised way of measuring ESG—instead, a variety of companies like [Bloomberg](https://www.bloomberg.com/professional/dataset/global-environmental-social-governance-data/), [Global 100](https://www.corporateknights.com/rankings/global-100-rankings/2021-global-100-rankings/2021-global-100-ranking/), [S&P Global](https://www.spglobal.com/esg/solutions/data-intelligence-esg-scores), [MSCI](https://www.msci.com/research/esg-research), [Diligent](https://www.diligent.com/en-gb/esg-measurement/?_bt=526842142688&_bk=esg%20rating&_bm=e&_bn=g&gclid=Cj0KCQjww4OMBhCUARIsAILndv4-cZ1RoEaE_0JiCRxlH3Lp5W9bBeY7A7lx_IyMAckUxXk3pOSPBn4aAiAoEALw_wcB&utm_campaign=DIL-EMEA--AD-YOY-NORTH-UK-IRE-NB-Solutions&utm_medium=ppc&utm_source=adwords), and [Refinitiv](https://www.refinitiv.com/en/sustainable-finance/esg-scores) provide ESG audits. 

The caveat is that each of these services has its own scoring system, meaning you'd have to be fluent in every methodology out there to understand how each company truly ranks against the others. 

There have been [attempts to regulate ESG](https://www.wsj.com/articles/european-union-aims-for-clarity-in-murky-world-of-sustainable-investing-11619020300), but more work is needed to define the process on a global scale and provide more clarity on ESG performance. In our opinion, these metrics are crucial to delivering performance benchmarks to ensure companies are complying with sustainable best practices. They're also a key metric for shareholders who want to ensure their investments are, in fact, in line with their ethics. 

## What impact does ESG have on financial markets?

It used to be that guiding your investments on ESG metrics alone meant that you were happy to sacrifice your financial returns for the sake of the cause, but nowadays that's not the case. Even the top firms are [changing their tune](https://www.theguardian.com/money/2020/jun/13/ethical-investments-are-outperforming-traditional-funds) when it comes to ethical investing. [BlackRock](https://www.blackrock.com/uk) and [Vanguard Group](https://www.vanguardinvestor.co.uk) are among the 43 companies [pledging to hit net-zero under the Net Zero Asset Managers initiative](https://www.bloomberg.com/news/articles/2021-03-29/vanguard-blackrock-join-investors-pledging-net-zero-emissions). 

Vanguard Chairman and CEO Tim Buckley said, "Climate change represents a long-term, material risk to our investors' portfolios. As a steward of our clients’ assets, we recognise the crucial role we and others play in driving real progress on climate risk over time." 

This isn't just rhetoric; Vanguard also [backed Engine No.1](https://www.raconteur.net/corporate-social-responsibility/activist-shareholders-corporate-governance/) in a vote to unseat two of ExxonMobil's directors in an effort to speed up and refocus their climate strategy,  a move which sent shockwaves through the corporate world and underlined a true demand for ESG issues to be taken seriously.

And it's no surprise it is being taken seriously if you look at the numbers. Companies emphasising ESG are now worth roughly [35 trillion US dollars](https://markets.businessinsider.com/news/stocks/global-sustainable-investment-alliance-report-esg-assets-responsible-investing-2021-7), or a third of all global assets. [A study published by Morningstar](https://www.morningstar.co.uk/uk/news/203214/do-sustainable-funds-beat-their-rivals.aspx) also showed that a majority of sustainable funds have outperformed non-ESG equivalents both in the short and long run in the period they studied.


## The future of ESG investments

With current threats to the climate and concerns of rising inequality, ESG investing will only become more critical. For example, after the UN released their ['Sustainable Development Goals'](https://sdgs.un.org/goals), businesses were quick to claim they would soon be in alignment with them. But trying to figure out which companies are actually meeting these targets can be hard work - making it clear that greater transparency is needed to measure and report environmental and social impact. If not, we risk what's known as 'greenwashing,' or corporate exaggerations about meeting green initiative targets.

For instance, some areas that could use improvement are:

- **Defining ESG objectives**:
Some ESG objectives can be interpreted differently from company to company or sector to sector. Clarity around these issues - such as [what it means to treat employees fairly](https://www.nytimes.com/2021/03/18/business/economy/amazon-wages-alabama-union.html) or how to truly create a positive impact in underserved communities - would make scores more transparent across industries.

- **A definitive ranking system**:
Because companies use such a variety of ESG scoring services, it is difficult to compare companies within sectors. [Almost half of valuation experts](https://www.duffandphelps.com/about-us/news/esg-reporting-system-effective-esg-disclosures) see this as the biggest threat to ESG disclosures. Without full disclosures, it's hard to ethically invest with confidence.

- **Monitoring changes**:
ESG issues are ever-evolving, as is their influence on the market - recently demonstrated by the [Black Lives Matter movement](https://www.ft.com/content/8813b73d-c39d-41c9-b1a8-ba2d2e2374da). Thus, ESG scoring systems need to be updated regularly to reflect these evolutions.

Ultimately, it will come down to demand. The more investors require greater detail regarding ESG data, the more pressure there will be on financial markets to deliver, and the more pressure there will be to regulate ESG reporting.

Additionally, making innovative use of proxy solicitations and pushing activism campaigns forward through platforms such as [Tulipshare](https://tulipshare.com/) can help create lasting change.



