Question about compound interest?and stocks?

Question

i am a newbie to stocks and investing. do some (stocks, money market, etf's, cd's) tend to compound more than once a year? if so/not can somebody give me a formula to find my gain at the end of the year? again i am a new so sorry errors in this question.

Answer 1

Stocks are not interest bearing so there is no interest to compound.  If the price of the stock goes up, you get a profit.  If the price of the stock goes down, you take a loss.

Money Market accounts are different at different institutions and each instititution sets it's own coumpound schedule. Some are monthly, some are daily, some are biannually, some are annually.  You just have to ask and they will tell you.

CD's are for different terms and, generally,  pay the interest all at once at the end of the term.  Although the new "no-risk" CD's may show a monthly interest gain.

ETF's are Exchange Traded Funds and they act like stock. The share price goes up or down and there is no interest to compound.