financial education

Learn about capital gains, cost basis, qualified dividends, and more

Reviewed by Julius Mansa
Fact checked by Vikki Velasquez

Many investors have questions about the best way to calculate their taxes on mutual funds. The way your mutual fund is treated for tax purposes has a lot to do with the type of investments within the fund’s portfolio.

In general, most distributions you receive from a mutual fund must be declared as investment income on your yearly taxes. However, the type of distribution received, the duration of the investment holding, and the type of investment are all important factors in determining how much income tax you pay on each dollar of a distribution.

In some cases, distributions are subject to your ordinary income tax rate, which is the highest rate. In other cases, you may be eligible to pay the lower capital gains tax rate. Other distributions may be completely tax-free.

Key Takeaways

• Mutual funds that create a lot of short-term capital gains—and are taxed at ordinary income (not capital gains) rates—can cost you.
• When it comes to distributions, the difference between ordinary income and capital gains is based on how long that fund has held an individual investment within its portfolio.
• If you receive a distribution from a fund that results from the sale of a security the fund held for only six months, that distribution is taxed at your ordinary income tax rate.
• If the fund held the security for several years, however, then those funds are subject to the capital gains tax instead.

Ordinary Income vs. Capital Gains

The difference between ordinary income and capital gains income can make a huge difference to your tax bill. In short, only investment income you derive from investments held for more than a year is considered capital gains.

This concept is pretty straightforward when it comes to investing in individual stocks. The world of mutual funds, however, is a little more complicated.

Mutual funds are investment companies that invest the collective contributions of their thousands of shareholders in numerous securities called portfolios. When it comes to distributions, the difference between ordinary income and capital gains has nothing to do with how long you have owned shares in a mutual fund but rather how long that fund has held an investment within its portfolio.

If you receive a distribution from a fund that results from the sale of a security the fund held for less than a year, that distribution is taxed at your ordinary income tax rate. If the fund held the security for 12 months or more, however, then those funds are subject to the capital gains tax instead.

When a mutual fund distributes long-term capital gains, it reports the gains on Form 1099-DIV, Dividends, and Distributions, and issues the form to you before the annual tax filing date.

Why Is This Important?

The difference between your ordinary income tax rate and your corresponding long-term capital gains tax rate can be quite large. This is why it is important to keep track of which income is subject to the lower rate. Ordinary income is taxed at either 10%, 12%, 22%, 24%, 32%, 35%, or 37% depending on filing status and income.

The capital gains tax rates are 0%, 15%, and 20%, and will depend on your filing status and income. Below are the tax rates and income brackets for capital gains for 2024 and 2025. Note that if you earn above the 15% maximum amount, your capital gains tax will be 20%.

Figuring Your Gains and Losses

If you sell your shares in a mutual fund, any amount of the proceeds that is a return on your original investment is not taxable since you already paid income taxes on those dollars when you earned them. Therefore, it is important to know how to calculate the amount of your distribution attributed to gains rather than investments.

To determine how much of your investment income is gain or loss, you must first know how much you paid for the shares that were liquidated. This is called the basis. Because mutual fund shares are often bought at various times, in various amounts, and at various prices, it is sometimes difficult to determine how much you paid for a given share.

Important

Mutual fund investors can face unexpected tax bills even when a fund’s value declines, as taxable distributions may still occur when the fund manager sells appreciated assets.

Cost Basis and Average Basis

There are two ways the Internal Revenue Service (IRS) allows taxpayers to determine the basis of their investment income: cost basis and average basis.

If you know the price you paid for the shares you sold, then you can use the specific share identification cost basis method. However, if you own many shares that have been purchased at different times, this method may be very time-consuming. Alternatively, you can use the first-in, first-out cost basis method, in which you use the price of the first share purchased as the basis for the first share sold and so forth.

If you cannot determine the price you paid for specific shares, you may choose to use the average basis method, where you can use the aggregate cost of all your shares as the cost basis for each share sold. However, all your mutual fund shares must be identical to employ this method, meaning you cannot use the average basis method to figure your gains if some of your shares are part of a dividend reinvestment plan (DRIP) and some are not.

Like income from the sale of any other investment, if you have owned the mutual fund shares for a year or more, any profit or loss generated by the sale of those shares is taxed as long-term capital gains. Otherwise, it is considered ordinary income.

Dividend Distributions

In addition to distributing income generated by the sale of assets, mutual funds also make dividend distributions when underlying assets pay earnings or interest. Mutual funds are pass-through investments, which means any income they receive must be distributed to shareholders.

This most often occurs when a fund holds dividend-bearing stocks or bonds, which typically pay a regular amount of interest annually, called a coupon.

When a company declares a dividend, it also announces the ex-dividend date and date of record. The date of record is the date on which the company reviews its list of shareholders who will receive the dividend payment. Because there is a time delay when trading stocks, any sale of shares that occurs fewer than three days before the date of record is not registered, and the list of shareholders still includes the name of the selling investor. The date before the date of the record is the ex-dividend date.

How Are Dividend Distributions Taxed?

In general, dividend income is taxed as ordinary income. If your mutual fund buys and sells dividend stocks often, more than likely any dividends you receive are taxed as ordinary income. For example, assume you receive $1,000 in dividend payments from your actively managed fund. If you are in the 24% income tax bracket, you pay $240 at tax time.

However, there are two very important exceptions: qualified dividends and tax-free interest.

Qualified Dividends

Dividend distributions received from your mutual fund may be subject to the capital gains tax if they are considered qualified dividends by the IRS. To be qualified, the dividend must be paid by a stock issued by a U.S. or qualified foreign corporation. Also, your mutual fund must have held the stock for more than 60 days within the 121-day period beginning 60 days before the ex-dividend date.

The ex-dividend date is the date after which the owners of newly purchased stock are ineligible for the dividend payment. If the ex-dividend date is April 12, for example, any investors who purchase stock on or after this date do not receive the impending dividend.

This may sound confusing, but essentially it means the fund must own the stock for either 60 days before the ex-dividend date or a combination of days before and afterward, adding up to at least 60 days. This complicated requirement is meant to discourage investors from purchasing funds with dividend-bearing stocks right before payments and then selling them off again, just to get the dividend. If your fund distributes qualified dividends, these dividends are reported to you on Form 1099-DIV.

Tax-Free Interest

The other way to minimize your income tax bill is to invest in so-called tax-free mutual funds. These funds invest in government and municipal bonds, also called “munis,” that pay tax-free interest. Money market mutual funds, for example, invest primarily in short-term government bonds and are widely considered stable and safe investments.

However, while municipal bonds pay interest that is exempt from federal income tax, they may not be exempt from your state income tax or local income taxes. In some cases, interest paid on bonds issued by governments in your state of residence may be triple-tax-free, meaning the bonds are exempt from all income tax. To avoid being caught off guard by unexpected taxation, verify with your fund which bonds within its portfolio are tax-free and to what degree.

How Are Distributions From Mutual Funds Taxed?

Most mutual fund distributions are considered taxable investment income. The tax rate depends on factors like the holding duration of the investment within the fund and the nature of the distribution, which could be ordinary income, capital gains, or sometimes tax-free.

What’s the Difference Between Ordinary Income and Capital Gains?

Ordinary income typically includes short-term capital gains (from assets held under a year) and is taxed at standard income tax rates. Long-term capital gains, from assets held over a year, are generally taxed at lower rates (0%, 15%, or 20%), which depend on your income bracket.

How Can I Reduce Taxes on Mutual Fund Distributions?

Investing in tax-advantaged accounts, like IRAs, choosing funds that focus on tax-free municipal bonds, or opting for tax-efficient funds can help lower tax burdens. Additionally, qualified dividends and long-term capital gains rates may offer tax savings if distributions are eligible.

The Bottom Line

Calculating the taxes you owe on mutual fund income and distributions can be extremely complex, even for the most seasoned investor. The IRS’s Publication 550, Investment Income and Expenses (Including Capital Gains and Losses) can be some help in informing you about these issues. But unless you own just a handful of shares and keep careful records, you may benefit from consulting a tax professional to ensure you are properly reporting all your investment income.

Fact checked by Kirsten Rohrs Schmitt
Reviewed by Margaret James

What makes the best entrepreneurs successful? For some, it’s patience and a reliance on feedback from close partners. For others, it’s superior knowledge and perseverance. For almost all, it’s being bold, taking risks, and trying things that have never been done.

In this article, we’ll look at 10 entrepreneurs who not only succeeded at what they did but built vast business empires that often spanned several industries.

Key Takeaways

• Early entrepreneurs who built business empires include John D. Rockefeller of Standard Oil and steel magnate Andrew Carnegie.
• Thomas Edison founded General Electric (GE), while Henry Ford revolutionized manufacturing, bringing cars to the masses.
• Oprah Winfrey and John Johnson pioneered broad entrepreneurial portfolios and spanned industries, mediums, and customer bases.
• Tom Love, Charles Schwab, and Steve Jobs scaled enterprises that are commonly seen and used across the country.

Who Are the 10 Greatest Entrepreneurs?

These businesspeople changed their industries and culture, built vast wealth, and created innovations that continue to influence our lives today.

1. John D. Rockefeller

Buried in Cleveland, Ohio, John D. Rockefeller was the richest man by most measures in his time. He made his fortune by squeezing out efficiencies through horizontal and vertical integrations that made Standard Oil synonymous with monopoly, and the price of fuel dropped drastically for the everyday consumer. The government broke up Standard Oil for good in 1911.

Rockefeller’s hand can still be seen in companies like Exxon and Conoco, which profited from the R&D and infrastructure they received as their piece of the breakup.

Rockefeller retired at the turn of the century and devoted the rest of his life to philanthropy. More than 80 years after his death, Rockefeller remains one of the great figures of Wall Street.

2. Andrew Carnegie

Andrew Carnegie loved efficiency—his mills were always on the leading edge of technology. Carnegie combined his superior processes with an excellent sense of timing, snapping up steel assets in every market downturn.

Like Rockefeller, Carnegie spent his later years giving away the fortune he spent most of his life building.

3. Thomas Edison

There is no doubt that Thomas Edison was brilliant, as both an inventor and a businessman. Edison took innovation and made it the process now known as research and development. He sold his services to many other companies before striking out on his own to create most of the electrical power infrastructure of the United States.

Edison is one of the founders of General Electric (GE)—the original company was Edison General Electric.

4. Henry Ford

Henry Ford did not invent the automobile. He was one of a group working on motorcars and was arguably not even the best of them. However, these competitors were selling their cars for a price that made the car a luxury of the rich.

Ford put America—not just the rich—on wheels and unleashed the power of mass production. His Ford Model T was the first car to cater to most Americans.

Ford’s progressive labor policies and his constant drive to make each car better, faster, and cheaper made certain that his workers and everyday Americans would think of a Ford when they shopped for a car.

Note

Though Charles Richard Patterson and Frederick Douglas Patterson didn’t make this top 10 list, these two men founded C.R. Patterson & Sons Co., which was the first (and only) Black-owned and operated automobile company in the United States. It lasted 74 years and closed in 1939. These successful businessmen undoubtedly helped shape today’s automotive industry, fueling the demand for innovation, customer service, and creative thinking when the car was created.

5. Oprah Winfrey

One of the richest and most influential women, Oprah Winfrey started her career as a news anchor and blossomed into a full-blown entrepreneur. Her show, “The Oprah Winfrey Show,” was syndicated nationally in 1986. It became the highest-rated U.S. talk show and earned Winfrey several Emmy Awards. She has also starred in films, including leading roles and as a voice actress in several animated films.

Winfrey is a pioneer in entrepreneurial endeavors, breaking into an on-air book club in 1996 and launching O, the Oprah Magazine in 2000. She co-founded Oxygen Media, a cable television network for women, and debuted a channel on satellite radio in 2006. Most notably, she created Oprah’s Angel Network, sponsoring charitable endeavors around the world. Not only has Winfrey paved the way for many businesswomen, she consistently demonstrates how to use entrepreneurial power for good.

6. Sam Walton

Sam Walton picked a market no one wanted and then instituted a distribution system no one had tried in retail. By building warehouses between several of his Walmart stores, Walton was able to save on shipping and deliver goods to busy stores much faster. By adding a state-of-the-art inventory control system, Walton lowered his cost margins well below those of his direct competitors. Then, rather than booking all of the savings as profits, Walton passed them onto the consumer.

By offering consistently low prices, Walton attracted more and more business wherever he set up shop. Eventually, Walton took Walmart to the big city to match margins with his competitors—and the beast of Bentonville has never looked back.

Important

Some question Walmart’s methods. Human Rights Watch found that while many American companies attempt to stop workers from organizing, Walmart stands out for the sheer magnitude and aggressiveness of its anti-union apparatus.

7. Charles Schwab

Charles Schwab, usually known as “Chuck,” took Merrill’s love of the little guy and belief in volume over price into the Internet Age. When May Day opened the doors for negotiated fees—all broker trades had previously been the same price—Schwab was among the first to offer a discount brokerage for the individual investor.

To do this, he trimmed the research staff, analysts, and advisors and expected investors to empower themselves when making an order.

From a bare-bones base, Schwab added services that mattered to his customers, like 24-hour service and more branch locations.

Merrill brought the individual investors back to the market, but Schwab made it cheap enough for them to stay.

8. Tom Love

If you’ve driven along an American highway, chances are you saw one of the over 600 Love’s Travel Stops & Country Stores scattered across 42 U.S. states. Known for its 24-hour access, restaurant offerings, and travel items, Tom Love built an empire with over 38,000 employees working in convenience stores across the country. In addition, Love employs workers at their corporate office in Oklahoma City.

A member of the Chickasaw Nation, Love and his wife Judy leased their first gas station in Watonga, Oklahoma, in the 1960s. In 2019, Love was inducted into the tribe’s hall of fame, noting that “the same love and qualities that define Love’s Travel Stops define the Chickasaw Nation.”

9. John Johnson

Born in Arkansas in 1918, John Johnson is regarded as one of the most influential African American publishers in American history. After finding success with his 1942 launch of Negro Digest, Johnson published Ebony, the most popular African American magazine in the world since its launch in 1945. Six years later, Johnson launched the largest weekly African American news magazine, Jet.

Johnson didn’t stop at publishing, though. He eventually owned Fashion Fair Cosmetics, the largest Black-owned cosmetics company in the world. He eventually became chairman and CEO of Supreme Life Insurance, as well. In 1996, former President Bill Clinton awarded Johnson with the Presidential Medal of Freedom, the highest civilian award in the nation.

10. Steve Jobs

Steve Jobs co-founded Apple, one of the only tech companies to offer a significant challenge to Microsoft’s dominance. In contrast to Gates’ methodical expansion, Jobs’ influence on Apple was one of creative bursts. Apple was a failing computer company when Jobs returned to it and made it into one of the top tech companies in the world.

The iPod, the iPhone, and the iPad are the engines of growth that propelled Apple toward the once unassailable Microsoft.

What Are Some Examples of Entrepreneurs in Healthcare?

The healthcare industry is full of bright and talented entrepreneurs, such as physicians running their own practices, independent traveling clinicians, and other professionals who assume risks to create new business opportunities or new ways of doing business.

For example, Ara Chackerian is Managing Director of ASC Capital Holdings, which invests in start-up healthcare companies. Abhilash Patel is an entrepreneur and strategist who co-founded Recovery Brands, which help people struggling with addiction find the treatment they need.

Who Is the Number One Entrepreneur in the World?

Depending on when this question is asked, the top entrepreneur in the world is often the world’s richest person. This title has been bestowed on several individuals over the years.

What Are Five Characteristics of Entrepreneurs?

There is no prescription for being an entrepreneur. However, there are traits most often shared by successful entrepreneurs. Here are five characteristics entrepreneurs should have:

• Take risks to pursue new opportunities
• Work hard and be persistent
• Know your target market and understand the one in which you will compete
• Continue learning
• Consider failures as new opportunities

The Bottom Line

These 10 entrepreneurs succeeded by giving customers something better, faster, and cheaper than others. Because entrepreneurship is so diverse, and everyone’s beginnings are different, entrepreneurs can take many different avenues to succeed.

Fact checked by Katrina Munichiello
Reviewed by Somer Anderson

Indeed vs. LinkedIn: An Overview

There are many employment websites to choose from. However, some operate differently, adding complexities to the job search.

Two of the most popular resources for job seekers are LinkedIn (LNKD) and Indeed.com. These sites offer a variety of employment opportunities; however, LinkedIn and Indeed.com are very different. LinkedIn is built as an employment-related social network, while Indeed.com is a metasearch engine for job listings.

Key Takeaways

• Indeed.com is a job board that aggregates postings from many sources, allowing users to search for specific positions.
• Indeed earns money through pay-per-click or cost per application models, and web advertising.
• LinkedIn is a social network for professionals and job seekers that offers a variety of services and makes money through premium subscriptions and enterprise solutions.

Indeed.com

Austin, Texas-based Indeed.com was founded in November 2004. It was created as a job listing board to compete with growing job boards, such as Monster.com and HotJobs. In 2010, Indeed.com overtook its competitors to become the most visited jobs website in the U.S. As of 2024 it boasted over 600 million unique visitors each month. It also lists jobs in over 60 countries and 28 languages.

A metasearch engine aggregates job postings from thousands of websites and employment firms, including company career web pages and recruiting firms. Prior to 2011, Indeed.com directed users to external job listings, but now the site allows job seekers to apply directly for jobs from within Indeed.com. Because of its ability to pull job listings from many diverse sources, the site offers a comprehensive listing of available job openings, which can be searched for by keyword, job title, industry, or level of experience. 

Indeed.com has also added services like resume storage, salary comparisons, employment-related news and trends, and user forums.

Indeed.com earns a profit using either the pay per click model or the pay per applicant system. With the pay per click model, employers pay a small fee each time a job seeker views a posting. With the pay per application model, employers pay for each applicant that meets minimum criteria. The company also earns money through advertising.

68%

The number of employers who use online jobs boards for all or most of their hiring in 2024, according to a survey by iHire.

LinkedIn

LinkedIn does have a job board as part of its suite of services, but it is first and foremost a professional- and business-related social networking site. It was founded in December 2002 and became a public company on May 11, 2011. In 2016, Microsoft acquired LinkedIn for $26.2 billion. The company served over one billion members in more than 200 countries and territories as of 2024. Prior to its acquisition, it succeeded in growing through a series of acquisitions that bolstered and expanded its core business.

In addition to a job board, LinkedIn gives users the ability to find friends and colleagues and build a social network geared towards professional networking and information sharing. Users can search for professionals outside of their network and then ask to be introduced by a common connection. The main profile page for a user is designed to appear like a resume or CV with employment history, education, skills, and professional interests prominently displayed. Forums and groups are available for networking and discussing specific topics.

LinkedIn generates revenue across four main product lines: Talent Solutions, Marketing Solutions, Sales Solutions, and Learning Solutions, in addition to collecting Premium Subscriptions. All four product lines are sold through two channels: an offline field sales force, which engages with both large and small business customers, as well as an online, self-serve channel—where it generates revenue from both enterprise customers and individual members purchasing subscriptions.

Individual users may use the website and many of its services free of charge under a basic plan but can upgrade to a premium subscription for a monthly fee. There are four premium options to choose from depending on how the user wishes to take advantage of the site: one for job seekers; one for professional networking and business promotion; one for generating sales leads and finding potential new customers; and one for employers or recruiters to post jobs and find talent.

How Do I Make My LinkedIn Profile Better?

Experts say that a strong LinkedIn profile should appear professional and highlight the unique skills and value that a candidate brings to professional employers. Use a high-quality, professional-looking headshot and use the headline statement to highlight the specific skills or areas of expertise associated with each role. In addition, you should use the featured content section to highlight your work and showcase your achievements. Finally, posting regularly can emphasize that you are thoughtful and professionally engaged with your industry.

What’s the Best Way to Improve My Resume?

Since many employers use algorithms to screen applicants, recruiters recommend using your resume to highlight keywords associated with the position. Look for keywords in the job description, or keywords specific to your industry, and use them in your resume. In addition, make sure your resume uses active language and emphasizes your achievements in each position.

What’s the Best Job Search Site?

While LinkedIn remains the most popular site for social networking, there are many other job sites to choose from, including Indeed, ZipRecruiter, CareerBuilder, and others. In addition, some industries have their own jobs boards for specific qualifications. Ultimately, an effective job search strategy will combine professional social networking with regular searches on jobs boards associated with your desired career.

The Bottom Line

Indeed and LinkedIn are both among the most popular sites for job seeking and career development. The difference is that while they both have job boards, LinkedIn is primarily a social network where professionals can post and connect with their peers and potential employers.

Reviewed by Andy Smith

A junior mining company is an exploration company in search of new deposits of gold, silver, uranium, or other precious metals. A junior gold miner is a junior company that exclusively mines gold. Most of these companies are in the development and exploration phase and are on the lookout for land with a higher chance for uncovering large mineral deposits.

As an investor, it is important to be able to tell the difference between a legitimate company ready to strike it rich and fly-by-night operations. If you are able to invest in a company before it hits the mother lode, you could be rewarded handsomely. Junior miners are often considered growth stocks. Many junior miners are penny stocks. These companies usually do not pay dividends, as they need to reinvest earnings to mine for gold.

Key Takeaways

• A junior gold miner is an exploration company in search of new deposits of gold.
• Investors need to be able to tell the difference between a junior gold miner ready to strike it rich and fly-by-night operations.
• Criteria that classify a company as a junior gold miner include not being listed on the Philadelphia Gold and Silver Sector Index or the NYSE Arca Gold BUGS Index (also known as the HUI Gold Index), and its resources, proximity to gold production, and quantity of gold uncovered in recent years.
• Other criteria of junior gold miners are being listed on the Toronto Stock Exchange or the TSX Venture Exchange, and a market capitalization that is typically small.
• Investing in junior gold miners is usually high-risk, as the companies have limited capital and are often very sensitive to the price of gold.

Unclear Criteria

There is much debate surrounding the criteria that classify a company as a junior gold miner. There is no universal definition of a junior gold mining company. Some financial analysts consider gold mining companies not listed on the Philadelphia Gold and Silver Sector Index (XAU) or the NYSE Arca Gold BUGS Index, better known as the HUI Gold Index (^HUI or HUI), as junior gold miners. Other criteria used to determine if a company is junior include its company’s resources, its proximity to gold production, and the quantity of gold it has uncovered in recent years.

Unlike a full-fledged gold mining operation, a junior gold miner typically does not have its own mining operation. A junior miner is a venture capital firm; it mainly relies on venture capital to secure its financing to undertake mining operations. There is some gray area in the definition of junior miner. Some financial analysts consider mid-tier mining operations junior if they recently decided to go into the development and exploration phase. There are publications available that list up-and-coming junior miners for a subscription fee.

Toronto and Market Cap

Another source of junior gold miners is the Toronto Stock Exchange (TSX). The Toronto Stock Exchange and the TSX Venture Exchange (TSXV) have hundreds of mining companies listed. The TSXV is your best source for junior miners. This stock exchange has mining companies conveniently broken down into categories.

Just like any other industry, market capitalization is a criterion commonly used to determine junior miner companies. On the TSXV, you can typically find small-cap companies. Small-cap miners are those in the early stages of development with market caps of $1 million to $5 million.

Invest at Your Own Risk

Junior gold miner operations are typically high-risk. A company only has a limited amount of capital to strike it rich. If it fails to discover gold mines before its debt comes due, it may have no choice but to file for bankruptcy.

Junior gold miners are typically very sensitive to the price of gold. If the price of gold suddenly drops, it may no longer be financially feasible to operate.

What Are Some Junior Gold Mining Stocks?

Examples of junior gold mining stocks include Adyton Resources (ADY on the TSXV), Montage Gold (MAU on the TSXV), and Zodiac Gold (ZAU on the TSXV).

Is There Another Way to Invest in Junior Gold Miners?

Yes. You could invest in an exchange-traded fund (ETF) that focuses on junior gold mining firms. The rationale for carving out specific ETFs for them is that they have more upside potential, but this comes with the downside of more risk.

Examples of junior gold miners ETFs include the VanEck Junior Gold Miners ETF (GDXJ), the Direxion Daily Junior Gold Miners Index Bull 2× Shares (JNUG), and the Sprott Junior Gold Miners ETF (SGDJ).

Where Can I Learn More About Junior Gold Miners?

A good resource is the Junior Mining Network website. Its features include free access to junior mining company lists, an advanced drill hole calculator, a junior mining stocks screener, a free morning newsletter, and more.

The Bottom Line

Junior gold miners are smaller companies that are exploring or in early production, working to identify and prove gold deposits. As gold prices rise, they may see greater growth as they produce new reserves. However, they are also less diversified in their operations, often with weaker balance sheets and higher failure rates.

Reviewed by Chip Stapleton
Fact checked by Timothy Li

An analyst who gives a stock an overweight rating expects the stock’s price to outperform its industry in the future. The rating may be based on a combination of positive news, good earnings, and raised guidance from the company.

Financial analysts give their opinions on the future performance of a stock using a standard formula: they may rate the stock underweight, market perform, or overweight. Some analysts add more tiers or use slightly different terms, such as avoid, hold, buy, and strong buy.

Most online brokers display ratings from several sources on their stock quote pages.

Key Takeaways

• An overweight rating means the stock appears likely to outperform its benchmark industry, in the opinion of the analyst. 
• An underweight rating implies the stock could underperform its benchmark industry.
• A market-perform rating suggests the stock should match the return of its benchmark.

Understanding Stock Ratings

Stock analysts are employed by investment firms to evaluate the financial performance of companies and forecast their future performance for the firm’s clients.

The investment analyst is making a recommendation for the stock, which is typically a buy, sell, or hold recommendation. However, the ratings that stock analysts provide are more involved than simply a buy or sell rating.

Below are the three most common ratings provided by stock analysts.

Overweight

An overweight rating on a stock means that an analyst believes the company’s stock price should perform better in the future. 

That said, the context is important. The analyst is making the recommendation based on an opinion of the stock’s likely performance in comparison with a certain benchmark.  

An overweight rating might be issued based on a benchmark index, such as the S&P 500, which is an index containing 500 of the largest publicly traded companies in the U.S. In this case, an overweight rating on the stock means that it deserves a higher weighting than the benchmark’s current weighting for that stock, in the analyst’s opinion.

For example, Apple Inc. has a weighting in the S&P 500 Index of about 7.1% as of early 2025. That means Apple comprises 7.1% of the total value of the index. An overweight rating on Apple would indicate that the equity analyst believes that Apple should have a higher weighting in the S&P 500.

Underweight

A stock that has an underweight rating means that an equity analyst believes the company’s stock price will not perform as well as the benchmark index being used for comparison. That would mean that the stock deserves a lower weighting than the benchmark’s current weighting for that stock. 

To an investor, the underweight rating is a signal that the stock could generate a below-average return compared to the benchmark.

Equal Weight

A stock that has an equal weight rating means that an equity analyst believes the company’s stock price will perform in line with or similar to the benchmark index being used for comparison.

Overweight and Price Targets

An overweight rating is generally interpreted by market participants as a sign that the company is doing well and its stock price should move higher.

Analysts usually include a price target for the stock, along with a time frame for its price to reach that target.

For example, say a pharmaceutical company’s stock is trading at $100 per share. Then the company announces it has received Food and Drug Administration approval for one of its drugs. The stock price quickly rises 25%. Soon after, an analyst may issue an opinion rating the stock as overweight with a price target of $175 in the next 12 months.

Criticisms of Overweight Ratings

An overweight rating may be one valuable piece of information, among others, that an investor can use to make a buy decision on a stock. It is an informed opinion, no more and no less.

An overweight rating cannot, however, suggest how many or how few shares to buy. An overreaction could tilt the investor’s portfolio out of balance, leaving the investor vulnerable to an unexpected turn of events in the company or the industry it is a part of.

If a stock or its industry currently has a large position within a portfolio and an investor buys more shares based on the overweight rating, the portfolio might no longer be diversified.

An investor whose portfolio is heavy with technology stocks should avoid purchasing an additional technology stock based on an overweight rating. The investor might consider selling another technology holding to make room for an overweight stock.

Special Considerations

An overweight rating might be a short-term trade. Some short-term investors respond to analyst upgrades, forcing a stock higher, at least briefly.

In any case, the investor’s time horizon, including the investor’s age will help determine how long a stock might be held. A retiree might hold a stock for only a few months or years because it may need to be converted to cash at some point. A millennial will have a much longer outlook.

The analyst’s rating needs to be taken into context with the investor’s time horizon, risk tolerance, and how soon the money will be needed.

Example of an Overweight Rating

Analysts may give a stock an overweight rating due to positive earnings and raised guidance.

For example, assume DEF, a technology company, releases its quarterly earnings results and beats its earnings per share and revenue estimates. In addition, the company raises its full-year earnings per share and revenue guidance by 25%.

The stock price rises by 10% after its earnings release, from $80 to $88 per share.

Meanwhile, the technology sector has been underperforming the market and declines by 20% while company DEF’s stock price has increased over the same period.

Since the stock is appreciating while the sector is depreciating, analysts give the stock an overweight and outperform rating with a price target of $150 in the expectation that DEF will outperform the industry.

What Qualifications Do Stock Analysts Have?

Stock analysts usually have an academic background in business, and often have CFA, CPA, or JD designations indicating further study. In recent years, analysts with specialized backgrounds in healthcare, engineering, or technology have been in demand.

Can I Be My Own Stock Analyst?

You can be your own stock analyst if you’re prepared for a deep dive into the intricacies of fundamental analysis or technical analysis. Fundamental analysis relies on a study of the financial numbers available from public companies. Technical analysis involves studying the price movements of a stock over time to identify patterns. Both attempt to predict the direction of the stock’s price in the future.

Do Stock Analysts’ Ratings Move the Market?

Yes. A respected analyst’s decision to rate a stock underweight or overweight can have an impact on a stock’s movement, at least in the short term. It’s yet another of the many variables that determine a stock’s price from moment to moment.

The Bottom Line

An overweight rating on a stock means that a stock analyst has concluded that it is likely to outperform its industry over the coming months. It may be based on a combination of positive news, upbeat comments from company insiders, and research into the current market for the company’s products.

Just remember, it’s a prediction, no more and no less.

Reviewed by JeFreda R. Brown

The last thing those living in co-ops want to hear at their annual shareholders’ meeting is that their co-op is in danger of defaulting. But for many people, this is a reality. Every year, co-ops are going bankrupt and leaving their “owners” in the cold.

Key Takeaways

• Co-ops can go bankrupt and leave their “owners” scrambling.
• Co-op defaults involve two commonly known types: technical defaults and mortgage defaults.
• Foreclosure—a lawsuit started by the lender to obtain legal title to the building—is the worst-case scenario when a co-op files for bankruptcy.
• The best advice for shareholders is to make educated decisions when shopping around and investigate the co-op before buying.

Types of Default

There are two commonly known types of default that involve co-ops: technical defaults and mortgage defaults.

1. Technical defaults are not terribly serious. Adam Leitman Bailey, Esq., a New York and New Jersey real estate lawyer and head of the New York City residential and commercial real estate firm Adam Leitman Bailey, P.C., says this type of default “consists of the failure to make repairs in violation of the mortgage agreement even though all monetary payments have been paid on time.” Usually, these types of defaults can be solved by arranging for the repairs to be completed or, at least, paid for.
2. Mortgage defaults are much more serious because the lender is not receiving payments for the building, as per the original agreement. This is a frustrating situation for shareholders who have diligently paid the monthly maintenance without missing payments. This is often the fastest route toward filing bankruptcy for co-ops. In this situation, the lender sends a notice of default to the building’s management, and if the mortgage default is not resolved, the foreclosure process begins.

Worst-Case Scenario: Foreclosure

Foreclosure is the worst thing that can happen when a co-op files for bankruptcy. A foreclosure is a lawsuit started by the lender to obtain legal title to the building. Stuart M. Saft, a partner at Dewey & LeBoeuf LLP, says that in New York, a foreclosure can take several years, but in the end, unless the co-op has a legitimate defense, a referee will hold an auction to sell the building, and the shareholders will revert back to being rental tenants and no longer “own” their apartments.

In the event that a co-op files for bankruptcy as a result of defaulting on its mortgage, the lender has the power to foreclose on the building and evict the shareholders. Bailey adds, “The lender of the underlying mortgage cannot go after each apartment shareholder because the building’s mortgage is not a personal guarantee by shareholders.” In a bankruptcy, the co-op’s bank will get paid before the shareholders.

So, any proceeds from the foreclosure sale of a bankruptcy will go to pay the bank. Shareholders who have obtained personal mortgages will be responsible for those payments even if they’ve lost ownership of the apartment shares.

In this scenario, shareholders don’t have many options. If the co-op chooses to file a Chapter 11 (a reorganization), the co-op mortgagee can move to convert it to a Chapter 7, which is liquidation, where the building is sold immediately.

In bankruptcy or foreclosure, the co-op shareholders remain as tenants if they are living there, but their proprietary lease is canceled. If they owe any mortgage on their apartment and don’t pay, “they may have adverse income tax consequences,” Saft confirms.

Co-operatives that may be in trouble of defaulting can try and catch up with payments by borrowing additional funds, raising the monthly maintenance fee, or adding an assessment. An assessment is a temporary increase in the monthly maintenance fee. This increase is designated for repairs or other expenses that the co-op needs covered.

What Can Shareholders Do?

Unfortunately for shareholders, there is not much that can be done if they’ve already purchased the co-op apartment. If they have purchased shares in a troubled co-op, they should seek advice from a qualified lawyer for guidance. The key is to make educated decisions when shopping around and investigate the co-op before buying.

Bailey says that when he represents a purchaser, he makes sure the building is stable by analyzing the building’s financials for the last two years. He compares the financial statement with any major structural improvements or needed repairs and looks for whether the building has solid cash reserves. Buildings that cannot afford to make mortgage payments or meet expenses are definite red flags.

Co-op apartment hunters can avoid falling into a “bad” co-op by asking for the financials themselves. Looking over a two-year history can provide a good glimpse of how well (or poorly) the building is doing. A low cash reserve, for example, could indicate the co-op will not have enough funds to cover emergency repairs. In this case, the co-op would need to acquire the funds from either the bank in the form of another loan or from shareholders.

Shareholders need to ask key questions when researching an apartment. For example, ask if the co-op has been making monthly mortgage payments. If they have missed payments, ask why. Ask if there are any other types of debt pending other than the mortgage, and if there are any upcoming major repairs—and if so, how the co-op is planning to pay for them.

Saft suggests some tips: “Look at the last financial statement to see if the accountant issued a clean audit letter; have your lawyer see if there are any liens filed against the building or the real estate taxes have not been paid. Try to find out from the managing agent if many shareholders are failing to pay their maintenance. Have your lawyer read the co-op’s minutes to see if there are any problems.”

What Is a Co-op?

Co-ops are housing arrangements where residents own a share of the legal entity, called a corporation. These shareholders receive a proprietary lease, or right, that allows them to live in one of the apartments or units.

Technically, the owner only owns shares in this corporation, not the real estate itself. The corporation owns the real estate. The owner of the shares pays a monthly maintenance cost that is used to cover building management expenses such as cleaning, heat, water, employee salaries, garbage removal, repair costs, taxes, insurance, and the building’s underlying mortgage.

How Many Housing Co-ops Are There in the United States?

A 2025 figure for U.S. housing co-ops is not readily available, but according to the Urban Homesteading Assistance Board, a national census conducted in 2015–16 with the support of the Ford Foundation found over 3,000 housing co-ops representing about 300,000 units of housing. Of these, 166,000 units were limited-equity, making them affordable for future generations.

According to the National Association of Housing Cooperatives, more than 1.2 million families live in U.S. housing co-ops, which are primarily located in urban areas such as Atlanta, Chicago, New York City, San Francisco, and Washington, D.C.

Are Co-op Bankruptcies Common?

Co-op bankruptcies are a rare occurrence. Saft says, “As far as we know, less than 10 co-ops have been foreclosed in NYC since World War II, so it is unlikely to occur now. However, it pays to be vigilant.” A technical default could lead to bankruptcy if all monies in the note become due as a result of a technical default, but this is unlikely.

The Bottom Line

The co-op board has a right to ask you, as a prospective buyer, about your financial history. It wants to make sure you will be able to meet the responsibility of monthly maintenance, in addition to your own personal mortgage payment. However, as a buyer, you also have the right to make sure the living space you will end up in is economically stable. Make sure you ask about every detail.

It’s your future, so exercise your rights.

Reviewed by Chip Stapleton

If you owe a debt that is significantly delinquent–usually 90 days or more past due–your lender may decide to either assign or sell your debt to a third-party debt collection agency. This is sometimes referred to as “charging off” the account. 

Sometimes collection agencies sell entire portfolios of debt accounts to each other. The reason for this is that the creditor might assume that you are never going to pay your debt; selling the debt to a debt collector or collections agency may help them recoup at least some of their money.

Key Takeaways

• If your debt is significantly delinquent–usually 90 days or more past due–your lender may decide to either assign or sell your debt to a third-party debt collection agency.
• This practice is sometimes referred to as “charging off” the account. 
• When your creditor decides to charge off your account, the charge off–in addition to the account closure–will appear on your credit report.
• The original delinquency date–when you missed your last payment–remains the same.
• Your credit history is not altered, and the statute of limitations on credit reporting or on legal collection practices does not reset.

Charge Off Appears on Your Credit Report

When your creditor decides to charge off your account, the charge off–in addition to the account closure–will appear on your credit report. A new account with the third-party debt collection agency will open up, and the date opened on the account is the date purchased from the original (or previous) creditor. In this sense, the previous account is written off by the selling creditor, and a new collection account is opened. From that point on, you owe the debt to the collections agency.

Your Original Delinquency Date Stays Intact

This does not mean that your delinquency is wiped clean, however. The original delinquency date–when you missed your last payment–remains the same. It does not matter how many times the debt account changes hands. Your credit history is not altered, and the statute of limitations on credit reporting or on legal collection practices does not reset.

Collectors cannot legally restart the clock on the statute of limitations (seven to 10 years, depending on the debt) through any re-aging techniques or through the sale to a different debt collector. The Federal Trade Commission has shut down the operations of collection agencies for attempting to re-age debts.

This does not mean that nothing has changed, however. If your debt is moving from an original lender to a third-party debt collector, this new creditor’s collection efforts are regulated through the Fair Debt Collection Practices Act (FDCPA). The FDCPA is designed to protect you from unscrupulous or abusive debt collection techniques and generally only applies to third-party agencies.

Important

You can stop unwanted calls from collections agencies with a written notice to cease all contact. However, you will still owe any valid debts and the agency can still sue you for payment.

What You Should Do Next

If you are someone who has had your debt account sold to a third-party debt collection agency, you will likely be made aware of this; they will generally contact you (and sometimes aggressively) to ask for repayment. At any time, consumers can also review their credit reports to find out if one of their accounts has gone to collections. Your credit report will reveal all of your accounts and their statuses.

If a third-party debt collection agency reaches out to you, you have several options. But first, you should gather as much information as possible about the debt. Ask the agency about the original creditor, how much you owe, and if there are any fees that the agency has added on. You may also decide to contact the original lender to confirm that they have sold your credit account, and that the debt collections agency that is contacting you is the correct agency.

Once you have confirmed that the debt is yours, you have the option of working out an arrangement with the collections agency to settle the debt. The agency may offer you the option of setting up a payment plan for the debt.

It is important to keep in mind that, while it is illegal for collections agencies to restart the clock on the statute of limitations for your debt, if you make even one payment on the debt in the new account, the clock will start over.

What Is the Statute of Limitations for Debt Collection?

Each state has its own rules for how long a creditor has to collect a debt. For most states, the statute of limitations ranges from three to six years, with some states allowing as much as ten years for collection. It also depends on the type of debt; an oral promise may have a lower time period for enforcement than a written agreement.

What Do You Do If You Are Contacted by a Debt Collector?

Debt collectors can be frustrating, especially if you do not actually owe a valid debt. If you are contacted, do not apologize, promise to pay, or provide a “good faith payment.” Any acknowledgment of the debt could restart the clock on the statute of limitations. After being contacted, the first step is to send the debt collector a written letter contesting the debt, and requesting documentation of the amount that they believe you owe. The debt collector must stop trying to collect until they can validate the debt. After that, you can request that the debt collector stop contacting you, although you may still have to pay if the debt is valid.

How Do You Stop Unwanted Calls From Debt Collectors?

You can ask debt collection companies to stop contacting you at any time, regardless of the communications channel. However, they can still attempt to collect the debt by suing you. If they continue trying to contact you after a written notice to stop, you may be able to sue them under the Fair Debt Collection Practices Act.

The Bottom Line

Collections agencies are companies that seek to secure payment for past-due debt. Although their collections techniques can be frustrating, there are legal protections that you can use to your advantage.

Reviewed by Marguerita Cheng

Even in this charge-it world, there are times when having cash on hand is handy, especially when traveling out of the country. Sure, there are plenty of places waiting to make a currency exchange quick and easy. But that almost always means you will pay more for converting money than you should.

When it comes to exchanging currency sans fees, your bank will likely offer the best deal, unless you risk doing a private transaction with someone you find on Craigslist. 

By far, the best idea—both in terms of safety and advantageous rates—is to procure cash at a local ATM with a debit or credit card that doesn’t charge a foreign transaction fee. This will allow you to make purchases without incurring any more fees than you would when purchasing items in the United States. So before you go, make some calls and ask your banks and card companies about their terms.

Key Takeaways

• Having cash on hand can be especially important when traveling out of the country.
• While many venues exist for exchanging your home currency for foreign currency, some of the better ways include Travelex and credit cards, which both exchange currency for a small fee.
• The best option for most people looking to exchange currency is likely your own bank, which will often quote you favorable exchange rates.
• If you’re looking for a way to exchange currency without a fee, person-to-person transactions via Craigslist or other sites might be an option—though less secure than other choices.

What Are the Best Ways to Save on Currency Exchanges?

Let’s take a look at some of the best methods to cut back on pricy currency exchanges.

Your Local Bank

To avoid high fees, you can always go to your friendly local bank branch. But you’ll probably have to arrange for the money several days in advance.

“Most banks will allow you to order foreign currency prior to traveling internationally,” said Ileaa Swift, owner of the website Swift Travel Deals. “Banks such as Bank of America offer their customers the options to order currency online or in their banking locations by using Bank of America checking or savings accounts. If you do not have a savings or checking account with a particular bank, but have a credit card with the bank, visit the local branch and ask about onsite foreign currency exchange options.

Most banks even offer tips that will help you figure out how much foreign currency you will need to order and also offer options for cash advances. Most banks also have the option to print out currency exchange rates as wallet cards for you to take with you during your trip.” 

Travelex

If you have to have cash fast, an exchange firm is the easiest way. Travelex is probably the best-known company. You don’t have to order five days in advance (as you often do with your local bank), and you don’t have to deal with language barriers. Travelex will even deliver the money to your home or to your departing airport.

Of course, all of this convenience comes at a price: the service charge. If you wait until you get to an airport to exchange your currency, you’re probably going to pay a hefty foreign transaction fee.

Branch locations may be a little cheaper: Some Yelp customers (who generally give Travelex high marks) have commented that fees were waived if they checked in to a branch location online, and the company would take back any unspent money within 90 days of their trip, converting it back to U.S. dollars for no additional fees. Others comment that there are minimum amounts you have to exchange to avoid larger fees.

Think of Travelex as a concierge service. Like most anything else, you can always pay less if you’re willing to invest more of your valuable time doing the legwork on your own. But if you are taking an impromptu trip, waited too long, or just don’t want to go through the hassle, Travelex, and companies like it will make the process simple.

Warning

Be careful when withdrawing from ATMs overseas. Even if your bank does not charge a currency conversion fee, many ATMs have an additional surcharge for overseas debit cards.

Plastic

The plastic in your wallet isn’t a bad resource. But be careful: If you use your bank ATM card or a credit card, make sure it doesn’t charge a foreign transaction fee. If it does, be prepared to pay an extra 1% to 3%. If you plan to travel abroad regularly, consider getting a credit card with no foreign transaction fees. 

“Not only is the lack of a foreign transaction fee important but so is the exchange rate,” said Mike Scanlin, CEO of Born to Sell, a software development firm that creates covered call investment tools. “I did a test when I was in Japan. I used the same ATM machine first with a Bank of America debit card and then with a Capital One Visa card (with a cash advance feature).

Even though the transactions were done one minute apart, the Capital One [card’s] exchange rate was much better than the Bank of America [card’s] exchange rate. Plus, Bank of America charged a foreign ATM fee, where Capital One did not. Even though the Capital One [withdrawal] was treated as a cash advance (since it was a credit card and not a debit card), I was able to pay it off immediately with online banking, so there was no interest charge for the cash advance.

If you have multiple cards, you can do a similar test in a foreign country and then log onto the bank site to see what happened. Take out $100 with each of two or three different cards and see which cost you the most. Then use the best card for the rest of the trip.”

Craigslist

People who travel abroad sometimes end up with foreign currency they haven’t changed back into dollars. Place an ad on Craigslist, Facebook, or your local newspaper saying that they would like to exchange their currency. You avoid all fees and, depending on the other person, you can probably make the exchange at current exchange rates without any markups.

There are some caveats. First, you have to understand how to calculate exchange rates. There are online currency exchange rate calculators and plenty of articles to help with that. Second, any time money is involved, safety becomes a concern. Make the exchange in a public place and have somebody with you.

What Is the Best Place to Change Money?

Currency exchange shops tend to offer the greatest convenience, but they charge a high markup due to their overhead costs. For large amounts of cash, a local bank branch usually does not charge commissions or additional fees. But the best way to change money may already be in your wallet: If you have a credit card with no foreign transaction fees, that can get you a market-rate currency conversion without having to bring home change in foreign currency.

What Is the Best Credit Card for Traveling Abroad?

The best credit cards for traveling abroad are those that do not charge foreign transaction fees, since these can add up quickly over the course of a long trip. If you use a debit card, look for one without foreign ATM fees. After that, consider cards with reward programs for flights or hotel purchases. If you travel frequently, these benefits can be worthwhile.

What Is the Best Site for Forex Trades?

If you want to trade currencies as an investment, Investopedia ranks IG among the best forex brokers for overall experience. AvaTrade is also considered one of the best forex brokers for beginners, and XTB has the lowest costs.

The Bottom Line

Changing money was once a tedious ritual of international travel, requiring multiple visits to currency exchange shops to find the best rate. In today’s highly-connected world, the process is much simpler: You can change money online, or simply make purchases through a traveler-friendly credit or debit card.

Advancing the economic, political, and personal rights of women in the U.S.

Reviewed by Robert C. Kelly

Over time, there have been major advances in women’s economic, political, and personal rights in the United States. These include landmark legislation, the establishment of powerful and influential organizations, and Supreme Court decisions that affect gender equality. This timeline is an accounting of these moments in history. 

Key Takeaways

• Gaining the right to vote in 1920 was the most important milestone in advancing the position of women, according to about half of the 3,143 people polled for a Pew Research Center survey.
• Passage of the Equal Pay Act of 1963 and the Family and Medical Leave Act of 1993 were also cited as important by many adults surveyed.
• A majority of Americans say that feminism has had a positive impact on the lives of White, Black, and Hispanic women. About a quarter (24%) say feminism has helped wealthy women a lot; but only 10% say it’s been equally helpful to poor women. 

1848

The Married Women’s Property Act of 1848

This New York State law granted women the right to retain ownership of their property upon marriage. Section 1 of the law clarified that any property a woman owned at the time of her marriage, along with its earnings, would not be controlled by her husband, nor could it be used to settle his debts. A woman’s property would remain solely hers, as if she were unmarried. This legislation paved the way for similar laws in other states and contributed to the convening of the Seneca Falls Convention that same year.

Declaration of Sentiments

The Declaration of Sentiments, inspired by the Declaration of Independence, detailed the rights to which American women were entitled as citizens. Written mainly by Elizabeth Cady Stanton, the declaration was signed by 68 women and 32 men, notable among them the abolitionist Frederick Douglass, during the Seneca Falls Convention. When the document was made public, the intense ridicule and criticism it received made many eventually withdraw their names.

1890 

In September 1889, the Wyoming state convention ratified a state constitution that included a provision granting voting rights to female citizens. One year later Wyoming was admitted to the union, formally making it the first state to grant women the right to vote.

1900 

By the start of the 20th century, every state had passed Married Women’s Property Acts, granting married women the rights to own property and keep the wages they earned as well as the right to sue or be sued.

1912

Juliette Gordon Low founds Girl Scouts of America USA in 1912 in Savannah, Georgia, with just 18 girls. Girl Scouts of the USA began as an effort to empower girls to explore their abilities and aspire beyond the limits society placed on them. The movement championed girls’ right to pursue their interests and have a positive impact. Today, with 1.7 million members, it has grown into a worldwide community that encourages girls to reach their fullest potential.

1918

Margaret Sanger wins her suit in New York to allow doctors to advise their married patients about birth control for health purposes. The birth control clinic that Sanger founded two years earlier in Brooklyn, called Sanger’s Birth Control Federation of America, later became Planned Parenthood in 1942.

1920

The 19th Amendment, ratified in 1920, granted women the right to vote across all states and in federal elections. Because the fight for suffrage began in the 1800s, few of the original supporters lived to see the amendment’s passage. Throughout the struggle, suffragists faced harsh opposition, including heckling, physical assaults, and imprisonment. New York State’s adoption of women’s suffrage in 1917 and President Wilson’s eventual support were milestones. However, the fight for inclusivity continued, as Black women and other minorities faced ongoing discrimination in voting practices.

1942

Following the attack on Pearl Harbor on December 7, 1941, Congress passed legislation to create the Women’s Army Auxiliary Corps (WAAC) on May 14, 1942. The legislation was quickly signed into law by President Franklin D. Roosevelt, and Oveta Culp Hobby took the oath as its inaugural director on May 16. WAAC recruits more than 35,000 women for an anticipated 1,000 positions. In 1978, an act of Congress disestablished the Women’s Army Auxiliary Corps so that women could be assimilated more closely into the Army structure.

1963 

The Equal Pay Act is passed by Congress. This law makes it illegal for employers to pay women lower wages than men for work requiring the same skill, effort, and responsibility. Employees suspecting pay discrimination have legal routes for recourse, including contacting an Equal Employment Opportunity counselor or directly filing a lawsuit.

1964

The landmark Civil Rights Act is passed. Title VII safeguards employees and job seekers from workplace discrimination or unfair wage gaps due to race, color, religion, sex, or national origin. It applies to all employment-related activities, from hiring and firing to promotions and working conditions, ensuring equal treatment in every aspect of employment.

1965

In 1961, Estelle T. Griswold and Dr. C. Lee Buxton opened a birth control clinic in New Haven, Connecticut, violating a state law that banned the use of contraceptives, and aiming to challenge its constitutionality. Their arrest led to the Supreme Court case Griswold v. Connecticut in 1965, which not only overturned the law but also established a new constitutional right to privacy.

1966 

The National Organization for Women (NOW) was established on June 30, 1966, by activists, including Betty Friedan, to combat sex discrimination and advocate for women’s rights. Over the years, NOW has been pivotal in significant advocacy efforts, including marches for the Equal Rights Amendment and women’s reproductive rights. Today, it remains the largest women’s rights activist organization in the U.S.

1967

The Supreme Court strikes down the state of Virginia’s Racial Integrity Act, abolishing restrictions on interracial marriage across the United States. The suit was brought by Mildred Loving, of African American and Native American descent, and her White husband, Richard Loving. Arrested in 1958 for their marriage in violation of Virginia’s anti-miscegenation laws, the Lovings fought back. Their legal battle led to the landmark Supreme Court ruling that declared all laws prohibiting interracial marriage unconstitutional. It marked a significant moment for civil rights and altered marriage legislation throughout the country.

1969  

The first “no-fault” divorce law is adopted by California, allowing divorce by mutual consent.  This legislation was influenced by Governor Brown’s earlier call for reform, and removed the need to prove fault (such as adultery) in divorce proceedings. Instead, marriages could be ended due to “irreconcilable differences.” It sparked a nationwide overhaul of divorce laws.

1972 

The Education Amendments Act, Title IX, prohibits exclusion from participation or denied benefits on the basis of sex in any education program or activity receiving federal financial assistance.

1973

The Supreme Court ruling in Roe v. Wade makes abortion legal, which guaranteed a constitutional right to abortion. (On June 24 2022, in the  Dobbs v. Jackson Women’s Health Organization case, the Supreme Court overturned Roe v. Wade). In a separate ruling, Pittsburgh Press v. Pittsburgh Commission on Human Relations, the Supreme Court rules that a ban on sex-segregated “help wanted” advertising does not violate a newspaper publisher’s First Amendment rights, thus supporting this ban.

1974

Housing discrimination on the basis of race, color, national origin, disability, age, and sex is prohibited by section 109 of the Housing and Community Development Act. It expanded assistance for low-income families through various housing programs and introduced measures to improve mortgage and rural housing conditions. It also introduced the Community Development Block Grant program, allowing HUD to provide grant funds to local and state governments to be used to develop urban communities by creating more suitable living environments, expanding economic opportunities, and providing decent housing.

1975

States cannot systematically exclude women from juries, the Supreme Court rules in Taylor v. Louisiana. The Court emphasized that a fair cross-section of the community on juries is crucial for the integrity of the trial process, aligning with the principles of the Federal Jury Selection and Service Act of 1968.

1978

The Pregnancy Discrimination Act bans employment discrimination against women based on pregnancy, childbirth, or related medical conditions. The amendment excludes mandatory employer-paid health benefits for abortions, except in cases where the mother’s life is at risk or medical complications arise from an abortion, but does not forbid employers from offering such benefits.

1984 

The U.S. Supreme Court, in Roberts v. United State Jaycees, bans sex discrimination in membership for formerly all-male groups such as the Jaycees, Kiwanis, and Rotary Clubs.

1986

In Meritor Savings Bank v. Vinson the Supreme Court rules that sexual harassment and a “hostile environment” in the workplace constitute sex discrimination that is actionable under Title VII of the Civil Rights Act.

1989

The right of states to deny public funding for abortions and to prohibit public hospitals from performing abortions is affirmed by the Supreme Court. Further restrictions on abortion were imposed by the 2003 Partial-Birth Abortion Ban Act, the first law to ban a specific abortion procedure, upheld by the Supreme Court in 2007. However, in 2016, the Supreme Court struck down onerous abortion clinic regulations that were forcing women’s clinics to close.

1993

The Family and Medical Leave Act (FMLA) allows workers to take up to 12 weeks of unpaid leave to care for a newborn, newly adopted or placed child, or a seriously ill child, spouse, or parent or for their own serious health condition without fear of losing their jobs. Amendments extended the protections to workers with families in the military.

1994

The Violence Against Women Act funds services for victims of rape and domestic violence and allows women to seek civil rights remedies for gender-related crimes. Up for renewal every five years, in 2000 it created a legal assistance program for victims and addressed issues of dating violence and stalking. A bill to reauthorize the act in 2019 expired amid opposition from Senate conservatives. On March 15, 2022 the Violence Against Women Act Reauthorization Act of 2022 was signed into law by President Joe Biden as part of the Consolidated Appropriations Act of 2022.

2003

In Lawrence v. Texas, the Supreme Court strikes down state laws that make gay sex a crime. The effect of this decision is the striking down of all remaining state sodomy laws, thereby affirming the legal rights of lesbian, gay, and bisexual people in America.

2009 

The Lily Ledbetter Fair Pay Restoration Act extends the period during which a victim can file a pay discrimination complaint against an employer to 180 days after their last paycheck.

2014

The Supreme Court rules that the Constitution guarantees a right to same-sex marriage. The lawsuit, Obergefell v. Hodges, was brought by same-sex couples claiming that denying them the right to marry violated the 14th Amendment.

2017

In January 2017, 105 women (78D, 27R), making up 21% of the Senate and 19.3% of the House, held seats in the United States Congress, a new record. Currently, 151 women hold seats in Congress, including 125 in the House and 26 in the Senate, making up 28.7% and 26% of their respective chambers.

2020

The civil rights law that prohibits sex discrimination applies to discrimination based on sexual orientation and gender identity. This ruling by the Supreme Court came in three cases of employees being fired because they were gay or transgender: Bostock v. Clayton County, Georgia; Altitude Express Inc. v. Zarda; and R.G. & G.R. Harris Funeral Homes Inc. v. Equal Employment Opportunity Commission.

2021

Kamala Harris becomes the first woman to serve as Vice President of the United States, and also the first Black and Asian American person in this high office. The Biden administration chose a record number of women, including eight women of color, for Cabinet and other high positions.

2022

On May 12, the United States Senate confirms Admiral Linda Fagan as the first woman commandant of the U.S. Coast Guard, making her the first woman to lead any of the U.S. armed forces. On January 21, 2025, she was fired from her post by the second Trump administration.

2023

Claudia Goldin’s 2023 Nobel Prize in Economic Sciences marks a historic achievement, as she becomes the first solo woman to receive this honor, for her research on the challenges women face in achieving equal pay in the labor market.

Admiral Lisa Franchetti also makes history by becoming the first woman to lead the U.S. Navy, following the Senate’s approval of her appointment in November 2023. She also became the first woman to serve on the Joint Chiefs of Staff.

Expecting More

Dissatisfaction with the position of women in society has been growing. In a Pew Research Survey of 3,143 Americans, more expressed dissatisfaction with the state of gender equality than they did in a study conducted three years earlier. About half of Americans say gaining the right to vote in 1920 was the most important milestone in advancing the position of women. Some also cited the passage of the Equal Pay Act of 1963 and the Family and Medical Leave Act of 1993. A majority of Americans said feminism has had a positive impact on the lives of White, Black, and Hispanic women. About a quarter (24%) say feminism has helped wealthy women a lot; just 10% say it’s been equally helpful to poor women.

What Was the Most Important Historical Milestone in Gaining Gender Equality for Women in the U.S.?

According to about half (49%) of Americans polled by Pew Research, gaining the right to vote in 1920 was the most significant advancement of women’s rights in the U.S. in history. However, passage of the Equal Pay Act of 1963 and the Family and Medical Leave Act of 1993 were also cited as important by the majority of adults surveyed.

What Percent of Americans Favor Adding the Equal Rights Amendment (ERA) to the Constitution?

Nearly 8-in-10 U.S. adults (78%) favor adding the ERA to the Constitution, according to a Pew Research survey. Despite this, nearly half (49%) of those polled believe that adding the ERA to the Constitution wouldn’t make much difference when it comes to women’s rights.

What are Some Examples of Ongoing Gender Inequality?

Among forms of gender inequality often highlighted are:

• The fact that women work longer hours than men, especially in the home.
• In the workplace, women are paid less than men for performing the same type of work, resulting in a significant gender pay gap.
• Despite laws to the contrary, in practice women suffer from ownership inequality.
• Throughout the world education inequality is directed at women and girls.
• Worldwide, women also suffer from inequality when it comes to freedom of expression.

The Bottom Line

Despite great strides in women’s rights, from early laws that allowed women to own property to recent achievements like women leading in economics and the navy, the fight for complete gender equality is still ongoing. Our timeline highlights the successes along the way, but also points out the ongoing gaps and obstacles, especially regarding pay equity and leadership roles. The journey toward true gender equality will likely require more political activism, legislative support, and community involvement.

Reviewed by Samantha Silberstein

The price of oil is one of the most closely watched economic trends in the world. It affects the economies of every nation, and petrostates such as Venezuela are highly dependent on oil exports. Countries such as Venezuela, which depend highly on one resource for economic growth, rarely experience economic growth because they ignore other much-needed sectors and resources.

Key Takeaways

• Venezuela relies heavily on its oil exports and experiences economic swings that coincide with oil prices.
• Venezuela’s government faces sanctions from many countries that impact its ability to export oil.
• The country’s oil-producing and energy infrastructure is failing, making it dependent on allies for repairs and products needed for production.

The Effect of Oil Prices on Venezuela

Countries that rely on oil exports to drive their economies (while not ranking among the world’s largest oil consumers) experience a different relationship between oil prices and economic health. While oil prices maintain a complex relationship with the U.S. economy, the price of oil and Venezuela’s economy move pretty much in lockstep.

When oil prices are high, Venezuela enjoys economic growth. When oil prices drop, the country experiences magnified economic downturns because it relies too heavily on oil exports.

Oil Is Major Part of Venezuela’s GDP

Oil comprises more than 80% of Venezuela’s exports and more than 17% of its gross domestic product (GDP), so high prices provide a boon to the country’s economy. The period from 2006 until the first half of 2014, save for a brief dip in late 2008 on the heels of a global recession, saw oil prices mostly hover between $100 and $125 per barrel. During that time, Venezuela used its revenues from high oil prices to fund its budget and wield political power. By providing subsidized oil to as many as 13 neighboring Latin American countries, most notably Cuba, Venezuela extracted political favors and attempted to build a coalition against rival nations, namely the U.S.

Its oil giveaway program became more of a burden than a boon for the Venezuelan economy as oil prices collapsed toward the end of 2014. Venezuela was giving away over 200,000 barrels of oil per day (half of which went to Cuba), reducing the amount it had available to export for profit. When oil prices were over $100, Venezuela received enough margin from exporting oil that the lower volume didn’t harm its economy. When oil dropped significantly below that price level, the country’s margins were squeezed to the point where it did not meet its spending, resulting in ballooning debt.

In early 2015, Venezuelan president Nicolas Maduro, facing record low approval ratings brought on by the country’s crumbling economy, embarked on a world tour to implore other nations with heavy influence on the oil market to push the price back to $100 or more. Maduro’s desperate actions at the time serve as a testament to oil’s grip on the Venezuelan economy.

Venezuela’s Oil Situation as of 2025

By 2018, Venezuela was experiencing an economic crisis and shortages of food, medication, and basic necessities. The crisis continued, and by May 2024, more than 7.7 million people had fled the country. This mass migration diminished the workforce, including those in the oil industry.

As a result of this lack of labor, economic sanctions, and other issues, Venezuela’s oil production fell to its lowest point in more than 70 years. In 2023, production fell to 742,000 barrels per day, a 70% drop from its 2013 production level. However, the U.S. Office of Foreign Asset Control (OFAC) lifted sanctions on Venezuela’s energy sector in 2023, and OFAC granted Chevron waivers to resume exporting crude from Venezuela beginning in January 2023.

Advisor Insight

Venezuelan oil production increased to 772,000 barrels per day in 2024.

Because the country’s economy is closely tied to its oil production, it will need to find a way to attract workers and foreign oil companies like Chevron to increase production while dealing with sanctions. Additionally, the country’s refineries suffer from years of neglect, and much of its infrastructure is more than 50 years old. Since 2022, state-owned oil company PDVSA has been collaborating with Iran on repairing refineries and its oil infrastructure. However, an explosion in November 2024 caused “catastrophic” damages to the Muscar gas complex, requiring even more downtime and repair work. The production of diluents used by PDVSA was affected, which reduced its ability to dilute heavy crude and transport it.

But refinery repairs won’t be enough to get Venezuela back up and operating at full capacity. The U.S. Energy Information Administration expects the country to increase production but at a very limited capacity due to power grid failures and a lack of diluent. A diluent is a light hydrocarbon used to thin heavy crude oil for transportation in pipelines.

How Is the Economy In Venezuela?

As of February 2025, Venezuela’s economy is in a bad state. It depends highly on oil—and sanctions, old infrastructure, corruption, and poor economic decision-making in the past, which have caused the country to collapse.

What Caused Venezuela’s Economy to Collapse?

Venezuela’s collapse is a product of many issues stemming from poor government and economic management, political corruption, sanctions, hyperinflation, and over-reliance on one resource.

What Caused the Hyperinflation in Venezuela?

Hyperinflation in Venezuela was the result of many years of poor decision-making, such as printing money to finance the government and implementing price controls in attempts to reign in its downward spiraling economy.

The Bottom Line

Venezuela has the world’s largest proven reserves of oil, but its political and economic environment and collapsing infrastructure, as of February 2025, prevents it from reaching the production capacity it needs to reinvigorate its economy. It’s uncertain what the country will need to do to recover, but what is clear is that there is lots of work to do to put the country on the path to recovery.