But now, just a few months later, and with a new makeup of justices, Florida’s Supreme Court has reversed its October decision unilaterally and without petition, and has held that the Daubert standard is indeed the proper standard in Florida.

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A fractional share represents less than one full share of ownership in a company. Schwab Stock Slices™ allows you to place an order based on the dollar amount you want to invest, so you may end up with a fraction of a share, a whole share, or more than one share.

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Normal market hours are 9:30 a.m. to 4 p.m. ET. After-hours trading occurs after the markets close. There is also a session prior to the market’s open which is called the pre-market session. Together both sessions are referred to as extended-hours trading. Market makers and specialists generally do not participate in after-hours trading, which can limit liquidity.

Small-, mid- and large-cap stocks are ways to categorize market capitalization, which is the total value of all the shares of a company's stock. Very large companies like Apple and Alphabet (the holding company for Google) are considered large-cap stocks with market capitalizations starting at $10 billion. Stocks from relatively smaller companies are considered mid-cap or small-cap depending on how much all of the stocks they are issued are worth. Market capitalization for mid-cap stocks tends to be between $2 billion and $10 billion and for small-cap stocks between $300 million and $2 billion. As stock prices go up and down over time, market capitalization ranges and whether a stock is considered small-, mid- or large-cap changes over time as well.

An Initial Public Offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.

Learning Point: In Florida, Daubert is now the prevailing standard for expert witness evidence. Going forward, Florida requires a three-part analysis of expert opinion: was it based upon sufficient facts or data, was it the product of reliable principles and methods, and did the expert reliably apply the principles and methods to the facts of the case.

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Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Stocks are an important part of any portfolio because of their potential for growth and higher returns versus other investment products. In order to determine how much you might consider allocating to stocks, you should first develop a comprehensive financial plan that reflects your investment horizon and the level of risk you're willing to accept in exchange for the potential upside stocks can offer.

This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, please consult with a qualified tax advisor, CPA, financial planner or investment manager.

A ticker symbol is an arrangement of letters or characters that represent securities (stocks, mutual funds, etc.) that are publicly traded. When a company makes their securities available to the stock market, it establishes a unique ticker symbol. Then investors use the ticker symbol to place trades via an exchange like the New York Stock Exchange (NYSE) or the NASDAQ. Here are several ticker symbol examples: AMZN for amazon.com Inc., AAPL for Apple Inc., and IBM for International Business Machines Corporation (IBM).

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2. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.

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Since the 1993 case from which it was derived, most U.S. courts have employed the Daubert standard to determine the admissibility of expert evidence. Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). The Daubert Court noted that the Frye standard conflicted with Federal Rule of Evidence 702, and failed to require general acceptance of the theory or technique as a precondition of admissibility. The Daubert Court stressed that the purpose of Federal Rule of Evidence 702 is to ensure expert evidence is both relevant and reliable. The focus of the evidence under Rule 702, and under Daubert, is therefore not the opinion itself, but the principals and methods by which the opinion was formed. Daubert requires a three-part analysis of expert opinion: was it based upon sufficient facts or data, was it the product of reliable principles and methods, and did the expert reliably apply the principles and methods to the facts of the case.

A stock split is a type of corporate action that occurs when a company's board of directors decides to divide the company's outstanding shares into a larger or smaller number of shares. Splits are a change in the number of outstanding shares of a company's stock without a change in shareholders' ownership percentage in the company. For example, with a 2:1 split, a client will receive two shares for each share owned prior to and through the open on the security's split ex-dividend (or "effective") date. Also, the share price is adjusted so the value of ones holding in the split stock is unchanged, absent any price changes post-split.

This site is designed for U.S. residents. Non-U.S. residents are subject to country-specific restrictions. Learn more about our services for non-U.S. residents, Charles Schwab Hong Kong clients, Charles Schwab U.K. clients.

Investors buy and sell stocks for a number of reasons including the potential to grow the value of their investment over time, to potentially profit from shorter-term stock price moves, or even to earn an income by investing in dividend-paying stocks. The reasoning behind these decisions is often derived from qualitative and quantitative techniques like fundamental analysis or technical analysis. Keep in mind that the price of a stock can fall as easily as it can rise. Investing in stock offers no guarantee that you will make money, and many investors lose money instead. Payment of stock dividends is not guaranteed, and dividends may be discontinued. The underlying common stock is subject to market and business risks including insolvency.

Florida’s Supreme Court in October 2018 found unconstitutional the Florida Legislature’s attempt to codify the Daubert standard regarding admissibility of expert testimony. DeLisle v. Crane Co., 2018 Fla. LEXIS 1883 (Fla. 2018). The attempted codification of the Daubert standard, in the view of the Florida Supreme Court in October, violated the separation of powers given its exclusive authority to set court procedures. Further, the high court at that time held that the Frye standard is the better standard, and the one to be used in Florida courts rather than Daubert.

Preferred stocks generally have lower credit ratings than the firm's individual bonds (2) They generally have a lower claim to assets than the firm's individual bonds (3) Often have higher yields than the firm's individual bonds due to these risk characteristics. (4) Are often callable, meaning the issuing company may redeem the stock at a certain price after a certain date.

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Performance may be affected by risks associated with non-diversification, including investments in specific sectors. Each individual investor should consider these risks carefully before investing in a particular sector.

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We work hard to ensure your equity orders are routed to destinations that have provided high-quality executions over time. We seek out top-performing securities exchanges and liquidity providers and rigorously evaluate execution quality.

But now, Florida’s Supreme Court has receded from its position in DeLisle, and issued a 5-2 opinion adopting the Daubert standard for evidence throughout Florida. In re Amendments to the Fla. Evidence Code, No. SC19-107, 2019 Fla. LEXIS 818 (May 23, 2019). The amendments replace the Frye standard with the Daubert standard for admitting expert testimony to align with Federal Rule of Evidence 702. The Court stated that Daubert provides that “the trial judge must ensure that any and all scientific testimony or evidence admitted is not only relevant, but reliable.” The Court went on to reason that by adopting the Daubert standard, creating consistency between state and federal courts, the amendments “will promote fairness and predictability in the legal system, as well as help lessen forum shopping.”

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International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets.

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Stock quotes provide pricing information for a particular stock including the bid and ask, last-traded price, and volume of shares traded. Stock quotes show a moment in time, meaning what the stock is trading for when the stock market is open (which can be moving up or down at any given time), and the last price of the day when the stock market closes at the end of the trading day.

1. Source: Schwab Center for Financial Research with data from Morningstar. The indexes used are: S&P 500 (large cap equity), Russell 2000 (small cap equity), MSCI EAFE Net of Taxes (international equity), Bloomberg Barclays U.S. Aggregate Bond Index (fixed income), Citigroup 3-Month U.S. T-Bills (cash equivalents). The Moderate Allocation is 35% large cap equity, 10% small cap equity, 15% international equity, 35% fixed income, and 5% cash, using the indexes noted. Past performance is no indication of future results.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

The Daubert standard has found favor in most U.S. courts as encouraging expert opinions based on more reliable methods. Nevertheless, in October 2018, Florida’s Supreme Court rejected Daubert as the standard, in favor of the Frye standard.

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The use of expert opinions in trials is to assist the trier of fact in the quest for truth in complex subject areas that are not commonly known to laypersons. Court proceedings would quickly become circuses if just any “expert” evidence were permitted for consideration by judge or jury. For this reason, courts employ standards by which evidence may, or may not, be admitted as expert evidence.

Extended Hours Trading may not be suitable for all investors and poses certain risks. These risks include, but are not limited to, lower liquidity, higher volatility and wider spreads.

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Sector investing is the strategy of investing across an entire sector (ex: technology, financial, consumer staples, etc.), typically using mutual funds or exchange-traded funds (ETFs).

Yes, when you sell shares of a stock that you do not own, this is referred to as a short sale. You borrow the shares from a lender (like a broker-dealer) and sell in the open market with proceeds from the sale credited to your account. Eventually you must purchase the same number of shares borrowed and return them to the lender – this is referred to as closing out or covering the short-sale position. You must have a margin account in order to short stock. This is not a strategy for inexperienced investors.

Value and growth stocks are two different types of stock. Growth stocks are anticipated to grow at a rate above the average for the market. Value stocks are those that tend to trade at a lower price relative to their fundamentals. To determine whether a stock is underpriced, market analysts look at a company’s fundamentals (such as dividends, earnings, and sales) relative to its current share price. Growth stocks tend to be more volatile and generally do not pay dividends.

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Stocks are generally bought and sold electronically through stock exchanges, the two primary ones in the United States being the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASDAQ). While some companies sell stock directly to investors, most only sell stock through a brokerage such as Schwab.

The secondary market is where investors buy and sell stocks (and other securities such as ETFs, ADRs, etc.). The term "stock market", such as the New York Stock Exchange (NYSE) or the NASDAQ, is essentially a synonym for secondary market. In contrast to the secondary market, the primary market refers to the first time a security is created and sold to investors such as an initial public offering (IPO).

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Asset classes perform differently, and it's nearly impossible to predict which asset class will perform best in a given year. If you had invested $100,000 in just U.S. Stocks in 1997, it would have almost quadrupled to $400,000 by 2017, but there would have been many ups and downs due to volatility. A more diversified investment portfolio would have had a lower return, but reduced volatility.

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A stock that trades for less than $5 per share and is not traded on a U.S. stock exchange is commonly referred to as a penny stock.

A stock represents a share in the ownership of a company, including a claim on the company's earnings and assets. As such, stockholders are partial owners of the company. When the value of the business rises or falls, so does the value of the stock.

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Almost twenty years ago, the U.S. Supreme Court abandoned the standard that had been in use since the 1923 case Frye v. United States, 293 F. 1013 (D.C. Cir. 1923). The so-called “Frye” standard for the admissibility of expert evidence required that “the thing from which the deduction is made must be sufficiently established to have gained general acceptance in the particular field in which it belongs.” Florida courts over time began applying a “pure opinion” exception to the Frye standard, admitting into evidence the opinions of any expert who ignored scientific method but relied on his or her own experience or training.

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Short selling is an advanced trading strategy involving potentially unlimited risks, and must be done in a margin account. Margin trading increases your level of market risk.