financial

When the fourth quarter starts on Oct. 1 and when it doesn’t

Fact checked by Vikki Velasquez
Reviewed by David Kindness

Q4—also known as quarter-four or the fourth quarter—is the last quarter of the financial year for both corporations and other organizations. Many companies’ Q4 dates follow the calendar year, starting on Oct. 1 and ending on Dec. 31.

Key Takeaways

• Q4, or the fourth quarter, is the last quarter of the financial year for companies.
• The Q4 dates for most companies follow the calendar year, starting on Oct. 1 and ending on Dec. 31.
• Quarterly reports are a key piece of financial information for investors and analysts.

Q4 Dates

Many public companies, such as Meta, follow the business calendar year. However, other companies have financial years that end on odd dates. The financial year for Nike ends on May 31. Considering this differing financial schedule, its fourth quarter begins on March 1.

Nonprofit organizations tend to have non-calendar fiscal years, due to programming and fundraisers. Some have adjusted fourth quarters that start July 1 and end on Sept. 30. A majority of donations to nonprofits are received on Giving Tuesday, the largest single day for charity donations, and general end-of-year giving campaigns. Adjusting their calendar year and Q1 to start Oct. 1 allows nonprofits to kick off their fiscal year and better plan their expenses.

Important

Quarterly earnings reports impact a company’s stock and are important for publicly traded companies, investors, and analysts.

Quarterly Reports

The fiscal quarter and the fiscal year are the two main accounting periods for companies.  All companies with publicly traded securities are required to file U.S. Securities and Exchange Commission (SEC) Form 10-K on an annual basis and Form 10-Q quarterly. These annual and quarterly reports include varying levels of detail.

Quarterly financial results accompanied by presentations delivered by company management. Firms provide forecasts for future financial results during these presentations, which are often followed by conference calls where analysts and investors pose questions to a company’s management about performance. Q4 reports are typically published alongside the company’s annual report.

How Financials Affect Investors

Investors see the market’s reaction to financial reports. Sometimes a company beats estimates, and share prices increase. Perhaps the financials are disappointing and shares fall in value. Key financial accounting metrics are closely followed by research firms. These firms may also publish estimates of future financial results, including revenue, earnings, expenses, and cash.

The estimates made by these research firms are tracked by financial publications, which average them to arrive at consensus estimates. Firms that surpass estimates are said to have “beaten the Street,” while firms that report figures that are in line with estimates are said to have “met Street estimates.” Firms that report figures lower than estimates are said to have “missed Street estimates.”

When Is Q4?

Q4 is the last quarter of the fiscal year for companies. Most follow the calendar year, which means the fourth quarter starts Oct. 1 and ends Dec. 31. Some companies have fiscal years that follow dates that differ from the calendar year.

What Is a Fiscal Quarter?

A fiscal quarter is a three-month period that acts as a basis for a company’s periodic financial reports. Not all companies have fiscal quarters that correspond to calendar quarters.

Why Is Q4 Important?

Q4 reports mark the end of the fiscal year, and its financial results are typically published in tandem with a company’s entire annual report and financial overview. These financial results can significantly impact a company’s stock price.

The Bottom Line

Q4 is the last quarter of the financial year for corporations and organizations such as nonprofits. Many companies’ Q4 dates follow the calendar year, starting on Oct. 1 and ending on Dec. 31. Q4 is also known as quarter-four or the fourth quarter.

Fact checked by Vikki Velasquez
Reviewed by Julius Mansa

When companies or other entities such as governments need to raise money for new projects, fund operations, or refinance existing debts, they may issue bonds directly to investors. Many corporate and government bonds are publicly traded on exchanges.

Investors who hold bonds may adjust their portfolios to protect or profit from the market due to changes in interest rates, commodity prices, or company setbacks.

Key Takeaways

• Investors trade bonds for profit and protection.
• Investors profit by trading up to a higher-yielding bond or benefit from a credit upgrade.
• Bonds can be traded for protection where traders pull money from bonds exposed to industries that experience setbacks.

1. Yield Pickup

Investors trade bonds to increase the yield on their portfolios. Yield is the total return investors expect to receive and maximize if they hold a bond to maturity.

For example, investors may own investment-grade BBB bonds in Company X yielding 5.5%. They see that the yield on similarly rated bonds in Company Y traded at 5.75%. If the credit risk is negligible, selling the X bonds and purchasing the Y ones would net a spread gain or yield pickup of 0.25%.

2. Credit-Upgrade Trade

Three main providers of credit ratings for companies and country debt include Fitch, Moody’s, and Standard and Poor’s. The credit rating reflects the opinion of these credit rating agencies, on the likelihood that a debt obligation will be repaid, and swings in these credit ratings can present a trading opportunity.

The credit-upgrade trade can be used if an investor anticipates that a certain debt issue will be upgraded. When an upgrade occurs on a bond issuer, the price of the bond increases and the yield decreases. The investor tries to capture this anticipated price increase by purchasing the bond before the credit upgrade.

3. Credit-Defense Trade

In times of increasing instability in the economy, certain sectors become more vulnerable to defaulting on their debt obligations than others. A trader can adopt a more defensive position and pull money out of sectors expected to do poorly. For example, as the debt crisis swept through Europe in 2010 and 2011, many investors cut their allocation to the European debt markets, due to the increased likelihood of default on sovereign debt.

Signs that a certain industry will become less profitable in the future can trigger credit-defense trades within a portfolio. Increased competition in an industry due to reduced barriers to entry can cause increased competition and downward pressure on profit margins for all companies within that industry. This can force weaker companies out of the market or declare bankruptcy.

Important

Bonds are typically grouped and rated as investment grade or high-yield.

4. Sector-Rotation Trade

The sector-rotation trades seek to re-allocate capital to sectors expected to outperform relative to an industry or another sector. One strategy is to rotate bonds between cyclical and non-cyclical sectors, depending on where the investor believes the economy is headed.

During the U.S. recession that began in 2007, many investors and portfolio managers rotated their bond portfolios out of cyclical sectors like retail, and into non-cyclical sectors like consumer staples.

5. Yield Curve Adjustment

The duration of a bond portfolio is a measure of the bond’s price sensitivity to changes in interest rates. High-duration bonds have a higher sensitivity to changes in interest rates, and vice versa, with low-duration bonds. For example, a bond portfolio with a duration of five years can be expected to change in value by 5% for a 1% change in interest rates.

The yield curve adjustment trade involves changing the duration of a bond portfolio to gain increased or decreased sensitivity to interest rates. In the 1980s, when interest rates were in the double digits a trader who predicted the steady decrease in interest rates in the following years increased the duration of their bond portfolio in anticipation of the drop.

What Is the Correlation Between a Bond’s Price and Interest Rates?

The price of bonds is inversely correlated to interest rates—meaning a decrease in interest rates increases bond prices, and an increase in interest rates results in a decrease in bond prices.

When Can a Bond Trader Increase Duration?

Increasing the bond portfolio’s duration in anticipation of a decrease in interest rates can be one option for a trader.

When Do Credit Upgrade Trades Occur?

Credit upgrade trades typically occur around the cut-off between investment-grade ratings and below-investment-grade ratings. For example, a jump up from junk bond status to investment grade can result in significant profits.

The Bottom Line

Investors may juggle their bond portfolios just like their stock portfolios in response to changes in market conditions or a company’s financial health. Changes in interest rates, commodity prices, or corporate bankruptcy may trigger an investor to review their bond holdings.

Reviewed by Michael J Boyle
Fact checked by Jared Ecker

Private property rights are central to a capitalist economy, its execution, and its legal defenses. Capitalism is built on the free exchange of goods and services between different parties, and nobody can rightfully trade property they do not own.

Conversely, property rights provide a legal framework for prosecuting aggression against non-voluntary means of acquiring resources; there is no need for capitalist trade in a society where people could simply take from others what they want by force or the threat of force.

Key Takeaways

• Private property is one of the cornerstones of capitalism, allowing for the free and voluntary exchange of goods and services.
• John Locke’s homesteading theory states that ownership incentives encourage people to maximize a resource’s value through labor or trade.
• Private property improves economic efficiency by allowing competition, creating supply and demand, and avoiding certain issues, such as the Tragedy of the Commons.
• Legal protections for private property facilitate fairness, allowing for the exchange of mutually valuable services that benefit everyone.

Private Property, Ownership, and Homesteading

Contemporary notions of private property stem from 17th-century philosopher John Locke‘s theory of homesteading. In this theory, human beings gain ownership of a natural resource through an act of original cultivation or appropriation. Locke used the expression “mixed his labour.”

For example, if a man discovers an unknown island and begins to clear the land and build a shelter, he is considered the rightful owner of that land. Since most resources have already been claimed at some point in history, the modern acquisition of property takes place through voluntary trade, inheritance, gifts, or as collateral on a loan or a gambling wager.

Private Property Promotes Economic Efficiency

Most political theorists and nearly all economists argue that capitalism is the most efficient and productive system of exchange. Private property promotes efficiency by giving the owner of resources an incentive to maximize its value.

The more valuable a resource, the more trading power it provides the owner of the resource. This is because, in a capitalist system, someone who owns property is entitled to any value associated with the property.

When property is not privately owned, but rather shared by the public, a market failure emerges known as the Tragedy of the Commons. The fruit of any labor performed with a public asset does not belong to the laborer but is diffused among many people.

Note

Private property rights are so critical to capitalism that many economists and historians believe it facilitated the change from feudalism to capitalism.

There is a disconnect between labor and value, creating a disincentive to increase value or production. People are incentivized to wait for someone else to do the hard work and then swoop in to reap the benefits without many personal expenses.

The owners of private property have the right to transfer ownership as they see fit. This naturally cultivates trade between those with different resources and different wants.

Since most people want to maximize the value of their trade, competitive bids are accepted to receive the highest exchange value. Owners of a similar kind of resource compete with each other for exchange value. This system of competition creates supply and demand.

Consider this simplistic example. Someone owns a goat and would rather have chickens. They decide to sell their goat to purchase poultry. All of the sellers of chickens compete for this person’s money, which drives prices lower. The person must similarly compete with all other goat sellers when trading their goat.

Private Property and Law

The reason humans are willing to compete with each other in voluntary trade is because laws exist that protect private property. For a person to receive property they believe is valuable, they must provide a service that someone else believes is valuable. Everyone gains, in the ex-ante sense.

What Did Marx Mean by Private Property?

Marx discussed private property as referring to the means of production, such as factories, land, or tools, used to produce goods and create wealth. He believed that private property allowed capitalists to control production and exploit workers, who only had labor to sell. Marx envisioned the abolishment of private property, which he believed would end exploitation and create a more equitable society.

What Are Private Property Rights in Economics?

In economics, private property rights refer to the legal ownership and control individuals and entities have over resources, goods, or assets. These rights allow the owner to decide how to use, restrict, or transfer access to their property within the law. Private property rights facilitate investment, innovation, and efficient resource management.

What Is an Example of a Private Property Right?

An example of a private property right is owning land. If you legally own the land, you have the right to decide how it’s used, within legal boundaries. For example, you could choose to build a house and live in it, you could choose to grow crops and sell those crops for money, or you could sell your land. These rights are protected by law, allowing you to maximize the value of your land as you see fit.

The Bottom Line

Private property is considered to be the backbone of capitalism. It enables voluntary trade, economic efficiency, and legal protection. Private ownership incentivizes individuals to maximize the value of their resources, facilitating competition and supply and demand.

While public ownership risks inefficiency, private property enables productivity and fair exchange, upheld by laws that are intended to be mutually beneficial to all market participants.

How To Deploy Them To Improve Your Trading

Fact checked by Pete Rathburn
Reviewed by Charles Potters

The “Greeks” are an essential toolkit for options investors and traders. These mathematical calculations, each named after a letter from the Greek alphabet, tell you how options contracts will react under different market conditions. While the term might evoke images of ancient philosophers, in finance, the Greeks represent a thoroughly modern approach to putting a number to your risk and potential returns.

Options are complex financial instruments that give buyers the right (but not the obligation) to buy or sell an underlying asset at a preset price within a specific time frame. Their values fluctuate based on the underlying asset’s price, time until expiration, market volatility, and other factors. This is where the Greeks come into play, offering traders a way to dissect and understand these various influences on option prices.

Below, we guide you through the five primary Greeks—delta, gamma, theta, vega, and rho—explaining what each tells you, how they interact, and why they matter when you’re trading options.

Key Takeaways

• Delta, gamma, vega, theta, and rho are known as the “Greeks,” each providing a way to measure the sensitivity of an option’s price to different factors.
• Delta measures how much the price of an option is expected to change per $1 change in the underlying asset’s price.
• Gamma indicates how much of the Delta of an option is expected to change per $1 change in the underlying asset’s price.
• Theta provides the rate at which an option’s value declines as time passes, reflecting the option’s time decay.
• Vega shows how much the price of an option is expected to change with a 1% change in the underlying asset’s volatility.
• Rho measures the expected change in an option’s price for a 1% change in the risk-free interest rate.

Delta (Δ) 

Delta measures the sensitivity of an option’s price to changes in the underlying asset’s price. More precisely, delta shows how much the option’s price is expected to change for every $1 movement in the underlying asset’s price.

For call options, delta ranges from 0 to 1. It ranges from -1 to 0 for put options. At-the-money (ATM) options (where the strike price is at or near the present market price of the underlying asset) typically have a delta near 0.50 for calls and -0.50 for puts. Meanwhile, in-the-money (ITM) options have a delta close to 1 and -1 for calls and puts, respectively. These values reflect the greater likelihood of being exercised.

Traders use delta to gauge directional risk, with higher delta values meaning the option more strongly correlates with the underlying asset’s price moves. In addition, delta can serve as a rough estimate of the probability that an option will expire in the money, helping traders assess risk and adjust their position sizes.

Delta-Neutral Portfolios

Delta is also useful for constructing delta-neutral portfolios. This trading strategy tries to zero out directional risks from price changes in the underlying asset. Options traders and market makers employ this approach to hedge their positions against small-to-moderate price fluctuations. By balancing positive and negative deltas across different options or between options and the underlying asset, traders can create a relatively stable portfolio, whether the market moves up or down (within reason).

In a delta-neutral portfolio, the sum of all position deltas equals zero. For example, if a trader holds options whose deltas add up to 500, they might short sell enough shares of the underlying stock to create a negative delta of -500, resulting in a net delta of zero.

Note

Delta neutrality doesn’t guarantee profits or remove all risks, but it does protect you against more minor market shifts.

Gamma (Γ) 

Gamma is the Greek that measures the rate of change in an option’s delta relative to movements in the underlying asset’s price. While delta is like a snapshot of the current speed of your option’s value—how fast it changes as the stock price moves—gamma tells you whether it’s picking up speed or slowing down. It gives you an idea of how much delta will change for each $1 shift in the underlying asset.

Gamma is highest for ATM options, where small price changes greatly affect the likelihood of the option finishing ITM. It’s lower for deep-in-the-money or out-of-the-money (OTM) options, which are less sensitive to small price changes.

Keeping an eye on gamma can help those looking to maintain a delta-neutral portfolio: a higher gamma means you’ll have to adjust your holdings more frequently. Gamma can also help determine how much the option’s price sensitivity accelerates with shifts in the underlying asset’s price.

Gamma-Neutral Options Strategies

A gamma-neutral strategy seeks to stabilize the delta of a portfolio, meaning that the portfolio’s delta doesn’t shift too much as the underlying asset’s price moves. By achieving gamma neutrality, a trader ensures that their portfolio’s delta remains stable across a range of prices.

Traders might use a gamma-neutral approach to maintain a consistent level of risk in their portfolio—no matter the price swings in the market.

Theta (Θ) 

Theta measures the rate of an option’s time decay, quantifying how much an option’s price is expected to decrease as it nears expiration, assuming other factors stay constant. Generally, theta is negative for both call and put options. ATM options experience the highest theta because of their time value, while ITM and OTM options have lower theta because they possess less time value to lose.

Traders use theta to help see how much value an option will lose daily. Theta is also important for income-generating strategies like covered calls or cash-secured puts, where traders benefit from the gradual erosion of option premiums over time.

Traders holding long positions also want a handle on the negative impact of theta, ensuring that any gains from price changes in the underlying asset are enough to offset the losses from time decay.

Theta-Neutral Strategies

When constructing a theta-neutral portfolio, a trader aims to offset the time decay of options within the portfolio so that the overall value remains stable as expiration approaches. This strategy is often used by traders who want to focus on changes in volatility (vega) or the underlying asset’s price (delta) without being affected by the passage of time.

Note

Theta-neutral strategies work best in relatively stable markets.

Vega (V) 

Vega measures an option’s price sensitivity to changes in the underlying asset’s volatility. More specifically, it tells you how much the price of an option is expected to change with a 1% change in implied volatility. Typically, vega is highest for ATM options because these are most affected by changes in volatility, and it tends to be higher for options with more time until expiration, as they have a higher time value.

Traders use vega to gauge how changes in market volatility will impact the value of their options—like checking how massive the waves are while you’re on a boat to see how much your vessel is going to rock. Traders expecting increased volatility might buy options to capitalize on rising prices due to their higher vega, while those anticipating lower volatility might sell options to collect premiums.

Vega-Neutral Strategies

Vega neutral is a risk management strategy to minimize or eliminate the impact of volatility changes on portfolios. As with the other Greek-neutral strategies, to calculate the vega of an options portfolio, sum up the vegas of all the positions. The vega on short positions should be subtracted by the vega on long positions (all weighted by the lots). In a vega-neutral portfolio, the total vega of all the positions will be zero.

Achieving a vega-neutral position often involves combining long and short options. For example, suppose you have a portfolio with a positive vega, meaning it will gain value as volatility increases. In that case, you might sell options with a similar but negative vega to neutralize the potential impact of volatility changes. By doing so, you can focus on other aspects of the trade, such as the movement of the underlying asset, without worrying about the unpredictability of volatility.

Rho (Ρ) 

Rho measures how sensitive an option’s price is to changes in the risk-free rate, typically U.S. Treasurys. More specifically, rho is the expected change in an option’s price for a 1% change in interest rates.

Call options typically have a positive rho, meaning that their prices increase with rising interest rates, while put options generally have a negative rho since their prices decrease when interest rates rise. Rho is greater for longer-term options since the influence of interest rate changes is greater over longer periods.

Traders use rho to determine the potential impact of interest rate changes on options positions. This metric is more important for long-term equity anticipation securities (or LEAPS), where interest rate fluctuations more significantly affect options prices. In addition, rho is used by traders to hedge interest rate risk so that their portfolios are balanced to mitigate potential losses because of changes in interest rates.

The Greeks and Options Risks Graphs

A risk graph, also known as a profit/loss diagram or payoff diagram, represents the potential profit or loss of options positions at different underlying asset prices. It helps you understand the risk-reward profile of their strategy, showing the potential outcomes at various price levels and time frames.

Below, we provide the hypothetical risk profile of a long call option on XYZ Corp. with a strike price of $50. It includes the profit/loss calculations for the long position on this stock. The other three lines represent the potential profit/loss for different exercise prices:

The chart shows the following:

• When the option expires worthless: If the stock price is below the strike price ($50), the option expires worthless, resulting in a maximum loss equal to the premium paid ($230).
• When the option expires with a positive value: If the stock price is above the strike price, the option has intrinsic value.
• Time decay: The downward shift of the lines from T+30 to T+60 demonstrates time decay, the erosion of an option’s value as it approaches expiration.
• Accelerating time decay: The gap between the lines widens as expiration nears, indicating that time decay accelerates closer to the expiration date.
• Break-even point: The point where the options lines cross the zero profit/loss line is the break-even point. The stock price needs to be above this point at expiration for the option to be profitable.
• Maximum loss: The horizontal section of the option lines at -$230 is the maximum potential loss, which is limited to the premium paid for the option.
• Unlimited profit potential: The upward slope of the options lines to the right of the break-even point shows the unlimited profit potential as the stock price rises.

Minor Greeks

Options traders may also use second- and third-order derivatives to fill out an options position’s complete risk profile. Some of these minor Greeks (a misnomer for several) include the following:

• Lambda (Λ): Measures the percentage change in the option’s price relative to a percentage change in the underlying asset’s price
• Epsilon (ε): Represents the sensitivity of an option’s price to changes in the dividends paid by the underlying asset
• Vomma: Measures the rate of change in vega relative to changes in implied volatility, essentially showing how much vega changes as volatility changes
• Vera: Represents the rate of change in an option’s rho with changes in volatility, indicating how much interest rate sensitivity changes as volatility changes
• Speed: The rate of change of gamma relative to changes in the price of the underlying asset, showing how gamma evolves as the stock price moves
• Zomma: Measures the rate of change of gamma relative to changes in volatility, indicating how gamma changes as market volatility fluctuates.
• Color: Represents the rate of change of gamma over time, showing how gamma evolves as time passes
• Ultima: Measures the rate of change of vomma relative to changes in volatility, showing how vomma (and thus vega) behaves as market volatility shifts dramatically

While lesser known, these are increasingly used in options trading strategies since computerized applications can quickly compute and account for these complex risks.

Implied Volatility

Implied volatility and vega are different measurements of volatility. Implied volatility reflects the market’s expectations of the underlying asset’s future volatility over the life of the option. Unlike the Greeks, which measure sensitivity to specific factors like price or time, implied volatility is derived from the option’s market price and indicates how much the market anticipates the asset’s price will fluctuate.

An increase in implied volatility suggests expectations of significant price movements, leading to higher option premiums, while a lower implied volatility results from more stable price expectations.

In addition, implied volatility directly influences all the Greeks and the overall valuation of options. It’s often used as a market sentiment indicator, with a high implied volatility signaling uncertainty or fear and a low implied volatility suggesting relative market tranquility.

Traders use implied volatility not only to gauge whether options are overpriced or underpriced but also to develop strategies based on expected changes in volatility, such as trading straddles or strangles.

Example Using Options Greeks

Here’s the information you can glean from the above table:

• Delta: The delta for the META call options ranges from 0.23 to 0.65, indicating that the option’s price is expected to increase by $0.23 to $0.65 for every $1 rise in the underlying stock price. Conversely, the delta values for put options range from -0.35 to -0.77, meaning that the option’s price would decrease by $0.35 to $0.77 for every $1 increase in the stock price.
• Gamma: META’s gamma values are relatively low, ranging from 0.0069 to 0.0093, indicating the rate of change in delta concerning price movements in the underlying asset. For instance, a gamma of 0.0085 for the 515 strike call option means that the delta would increase by 0.0085 for each $1 rise in the asset’s price. This suggests that the delta changes gradually as the stock price changes.
• Theta: These values range from -0.22 to -0.31, with the 520 strike call option showing a theta of -0.31. This means the option loses $0.31 daily, assuming other factors remain constant.
• Vega: META options’ vega values range from 0.46 to 0.60 across the chain. The 520 strike call has a vega of 0.60, meaning the option’s price would increase by $0.60 for every 1% increase in implied volatility.
• Rho: The rho values are relatively low, ranging from 0.10 to 0.26 for calls and -0.16 to -0.37 for puts. A rho of 0.26 for the 505 strike call option shows that a 1% increase in the risk-free rate would increase the option’s price by $0.26.

How Does the Relationship Among Greeks Change in Different Market Conditions?

The relationship among Greek options can shift significantly should there be volatile, stable, and trending markets; interest rate changes; or major news events. In volatile markets, delta and gamma become more unstable, vega increases, and price moves tend to overshadow theta’s impact. In stable markets, gamma and vega are lower, making theta more prominent.

How Do Market Anomalies Affect the Traditional Understanding of Options Greeks?

Volatility smile and skew are market anomalies that complicate the traditional application of options Greeks by introducing inconsistencies in how delta, gamma, vega, and theta behave across different strike prices and expirations. These anomalies arise when implied volatility varies with strike prices, leading to higher volatility for OTM puts or both deep ITM and OTM options, challenging the assumptions of the major options models.

How Useful Are the Greeks in Modeling Options Prices?

The Greeks are useful since they quantify how an option’s value is sensitive to price moves, time decay, volatility, and interest rates. They allow traders to anticipate and respond to changes in market conditions, making them essential for effective options trading.

The Bottom Line

The Greeks help to measure an option position’s risks and potential rewards. Once traders clearly understand the basics, they can begin to apply them to their strategies. Knowing the total capital at risk in an options position is not enough. To understand the probability of a trade making money, it’s essential to be able to determine a variety of risk-exposure measurements.

These metrics provide traders with a way to determine how sensitive specific trades are to price and volatility fluctuations, as well as the passage of time. Combining an understanding of the Greeks with the clarity of tools like risk graphs can help you take your options trading to the next level.

The financial advisory profession is highly competitive. To succeed, advisors need to constantly seek ways to improve, meet new people, and keep abreast of industry developments.

Conferences are among the best ways to do that. Here is a list of the most anticipated conferences for financial advisors in 2025.

Key Takeaways

• Early bird specials or discounts are often available if payment is made in advance.
• Hybrid passes that allow access to video and streamed versions of sessions you missed may be available.
• Don’t neglect informal and unscheduled networking events; you may make your best networking connections that way.

Barron’s Independent Summit

• Dates: March 12–14, 2025
• Location: JW Marriott, Grande Lakes, Orlando, Florida
• Cost: $2,600 (admission is by invitation only, but you can apply to be invited).

This is an invitation-only annual gathering of the nation’s top registered investment advisors (RIAs) and independent advisors. Attending means rubbing shoulders with and learning from the best in the profession.

Exchange 2025

• Dates: March 23-26, 2025
• Location: Virgin Hotels, Las Vegas, NV
• Cost: $249 for advisors (for a limited time); industry tickets start at $5,499.

This year’s event will focus on portfolio strategies, practice management, and more, with guest speakers set to include Ian Bremmer, Anne Lester, David Kelly, and Christa Kuberry.

NAPFA Spring National Conference

• Dates: May 7-10, 2025
• Location: Sheraton Phoenix Downtown, Phoenix, Arizona
• Cost: To be determined.

The spring conference of the National Association of Personal Financial Advisors (NAPFA) will cover a range of topics related to advising and running an advisory business, regulatory trends, industry developments, and more.

AICPA Engage 2025

• Dates: June 9-12, 2025
• Location: ARIA Resort and Casino, Las Vegas, NV and online
• Cost: From $995 to $2,095 (price depends if you book early, are a member, and level of access).

The American Institute of Certified Public Accountants’s annual conference offers updates on many areas, including accounting and auditing, estate planning, personal finance planning, tax strategies, technology, and third-party risk.

Wealth Management Edge

• Dates: June 10-12, 2025
• Location: The Boca Raton Resort, Boca Raton, Florida
• Cost: $399 for advisors ($99 if you book early) for a basic ticket and $499 ($199 if you book early) for extra access.

This conference updates participants on investment strategies, technology, and practice management. Attendees gain access to high-profile guest speakers, one-to-one meetings, and roundtables. Extras include beachside yoga, wine tastings, poolside parties, and mentor-mentee speed dating.

Morningstar Investment Conference 2025

• Dates: June 25-26, 2025
• Location: Navy Pier, Chicago, Illinois
• Cost: $499 ($399 if you book early) for advisors. Other attendees pay $999 or $1,199.

Morningstar’s conferences are known for extensive investment research, updates, and analysis. This year’s keynote speakers include Christine Benz, Jean Chatzky, and Carolyn McClanahan.

XYPN Live 2025

• Dates: September 25-27, 2025
• Location: Austin Marriott Downtown, Austin, Texas or online
• Cost: $299 to $899, depending on whether you are a member, how early you book, and whether you attend in person.

XYPN LIVE features expert keynotes, a tech showcase, and opportunities for roundtable discussions. The topics covered are varied, with the event mainly focused on helping advisory firms better position themselves and more efficiently scale advice.

FPA Annual Conference 2025

• Dates: November 3-5, 2025
• Location: MGM Grand, Las Vegas, Nevada
• Cost: From $924 to $1,424, depending on whether you are a member and how early you book

Known as the largest gathering of certified financial planners (CFP), this year’s FPA Annual Conference offers attendees three days of keynotes, education on how to power their careers, and networking.

 IMPACT 2025 Schwab

• Dates: November 4-6
• Location: Denver, Colorado
• Cost: TBA

Not much is yet known about IMPACT 2025 other than the dates and the fact that it will be held in Denver, Colorado. Last year, industry experts, service and product providers, and thousands of advisors gathered to discuss, among other things, the psychology of succession planning, best practices for firms to grow, and effective communication methods.

Why Advisors Attend Conferences

Conferences offer numerous benefits. They give advisors the chance to change scenery and take a break from the office, reflect, listen to fresh perspectives, keep abreast of what is going on in the profession, and make new contacts. And, as a bonus, many of them also provide continuing education credits.

The Bottom Line

Conferences are ideal locations for financial advisors to meet people, grow their network, deepen industry knowledge, and learn more about global trends. Attending one or several of them could lead to a chance encounter or acquiring a piece of valuable information that significantly improves your professional and maybe even personal development while helping your business stay relevant or reach the next level.

Reviewed by Charlene Rhinehart

A stock’s ticker symbol is what identifies a company on an exchange, but they are not required to always remain the same. Sometimes, ticker symbols change because a company underwent a merger, was acquired, changed its name, or was delisted. Learn more about why ticker symbols might change.

Key Takeaways

• A ticker symbol is a set of letters that represent and identify a public security listed on an exchange.
• If a company is acquired, its ticker symbol usually changes to the acquirer’s after the completion of a merger.
• Generally, a company that changes its name will change its ticker.
• When companies are delisted from their exchanges, their symbol changes.
• Investors generally don’t need to do anything after a ticker symbol changes.

What Is a Ticker Symbol?

A ticker symbol is a group of characters, usually letters, representing and identifying public securities that trade on exchanges. The word “ticker” originally referred to the devices that received signals via telegraph and telephone lines that printed out abbreviations for companies along with their current stock price. The name stuck, and these symbols are still used today to quickly identify companies and stock prices.

Every security that is listed has a ticker symbol, which is chosen by the company before it is listed on an exchange. Although the symbol may be an abbreviation or other equivalent of the company’s name, this isn’t a requirement.

Companies that trade on the New York Stock Exchange (NYSE) have ticker symbols with three letters, while those listed on the Nasdaq have four letters.

My Ticker Changed!

Ticker symbols help investors identify companies when they’re doing research or making trades. But, like everything else, these symbols aren’t always static. They can change for several different reasons:

• The company merges with another corporation
• The company changes its name
• The company delists from its exchange

Mergers

Mergers take place when one company acquires another one. Since they combine to form one new entity, they can’t both trade on the exchange. So, what happens to the two ticker symbols? When two companies merge, the entity being acquired usually gives up its ticker symbol in favor of the acquiring company’s symbol. Corporate actions, such as mergers, can often be positive for a company, especially if the company is taken over for a premium over the share price.

Name Changes

A ticker symbol may change because the company changes its name. A company name change generally doesn’t mean much to its operations, though investors may interpret it as a positive sign if it reflects a positive change in the company’s overall strategy. Here’s an example: When AOL Time Warner dropped the AOL and became simply Time Warner, it changed its symbol from AOL to TWX.

Delisting

If a ticker symbol has letters preceding it, such as OTCQX, OTCQB, or Pink, the stock is traded on OTC Markets, not on a public stock market. No longer trading on the original exchange, it’s on the less liquid and more volatile over-the-counter market.

A stock that has been delisted is like a baseball player sent from the major leagues to the minors. For some reason, the stock is no longer worthy of trading on a major exchange, generally because it failed to maintain the exchange’s requirements.

Most companies that are listed on the Nasdaq have four-letter ticker symbols. But there are instances when the exchange adds a fifth letter. This letter tells investors something important about the company. Two of these letters are no longer used. Companies that entered bankruptcy proceedings had a “Q” added to the end of the ticker. It also made changes when companies were delinquent with their SEC filings by adding an “E” to the end. The Nasdaq ended this practice in January 2016 and now uses the Financial Status Indicator to denote delinquent regulatory filings or bankruptcy proceedings.

What to Do if Your Stock’s Ticker Changes

A ticker symbol change doesn’t require any action from you, the investor, in the grand scheme of things. The change itself doesn’t do anything to markets or to the way you execute trades, but the change in the company might have an effect on its market price. Since everything is electronic, your trading platform or broker will already update your portfolio to include the new ticker symbol.

Can a Stock Ticker Change?

Yes, and it happens frequently in the market as companies go through changes.

Who Replaced the Ticker Tape?

The physical ticker tape devices were replaced as technology developed, eventually changing to computer-based models as information became communicated through the internet much faster.

How Often Do Stock Tickers Update?

Many exchanges have per-second price changes, but prices can be delayed at set intervals, such as 15 minutes or one hour.

The Bottom Line

Stock tickers are company identifiers on exchanges that allow for quick display and reference of company stock prices. They can change when companies undergo changes like mergers or being delisted on an exchange.

Reviewed by Lea D. Uradu
Fact checked by Vikki Velasquez

A property tax bill is part of the homeownership experience. Local governments collect these taxes to help fund projects and services that benefit the entire community—things such as roads, schools, police, and emergency services. There are two primary ways to pay your property tax bill: as part of your monthly mortgage payment or directly to your local tax office.

Key Takeaways

• Local governments collect property taxes to help pay for services and projects that benefit the community.
• Property taxes are an ad valorem tax, so the tax is based on the value of the property.
• If you have a mortgage, your property tax may be rolled into your monthly mortgage payment. Otherwise, you must pay the tax office directly.
• You may also owe taxes on personal property for items such as your car, boat, or RV.

Ad Valorem Tax

Property taxes are an ad valorem tax, meaning the tax is based on the assessed value of an item. A property assessor determines the value of your property by estimating its fair market value (FMV)—that is, the price a willing buyer and seller would agree upon in an open market.

To do so, the assessor reviews the sales records of comparable properties in the area—known as “comps”—that are similar in condition, features, and size. The assessor may consider other factors, too, such as the property’s rental income history (or potential), replacement costs, maintenance costs, and any recent improvements you made to the property.

How Is Property Tax Calculated?

To determine your tax bill, the tax office multiples your property’s assessed value by the local tax rate. For example, if your home is assessed at $400,000, and the local tax rate is 1%, your tax bill would be $4,000. Of course, the higher the assessed value, the higher the tax bill.

Some local governments apply the tax rate to just a portion of the assessed value. This is known as the assessment ratio. If your home is assessed at $400,000, and your county has an assessment ratio of 80% and a tax rate of 1%, your tax bill would be $3,200 ([$400,000 × .80] × .01).

How to Pay Your Property Tax

In general, there are two ways to pay your property tax bill: as part of your monthly mortgage payment or directly to your local tax office.

PITI

If you have a mortgage, your property taxes may be rolled into your monthly mortgage payment. If so, your lender divides your estimated tax bill by 12 and includes that amount in your monthly payment, along with the principal, interest, and private mortgage insurance—four costs collectively known as “PITI” (principal, interest, taxes, and insurance). For a $4,000 annual property tax bill, for example, you would pay about $334 a month. Your lender estimates your tax bill, so you’ll get a refund if you paid too much, or you might have to make an extra payment if the amount you paid comes up short.

You can find out the total amount of property tax you paid by looking at box 10 (“Other”) of Internal Revenue Service (IRS) Form 1098. Your lender will send this to you by January 31st if you paid $600 or more in mortgage interest during the previous tax year. If you didn’t receive a 1098—and you should have—call your lender or find the information on your lender’s website. You may be able to lower your tax bill by appealing your assessment (if you think it’s too high) or finding out if you’re eligible for any exemptions.

Pay Your Local Tax Office

If you don’t pay your property tax as part of a monthly mortgage payment, you’ll pay the tax office directly. You should receive a bill in the mail that includes payment directions. Depending on where you live, you may have several payment options:

• By check or money order sent through the mail
• Online using a credit or debit card
• Online using an electronic check payment (eCheck)
• By telephone using a credit or debit card

In addition to the different payment options, you may get to choose if you want to pay the bill all at once or split it into monthly, quarterly, or biannual payments. Pay attention to any prepayment discounts offered—some municipalities provide a discount if you pay early.

Important

If you use a credit or debit card to pay your bill, you may be charged a convenience fee—that is, a flat dollar amount or a percentage of the bill, typically 1% to 3.5%.

Personal Property Taxes

Real estate—your land and any property attached directly to it—is called “real property.” When people talk about property taxes, they’re usually referring to this type of property. Of course, real property tax may not be the only property tax you owe.

Depending on where you live, you may also owe taxes on personal property. Personal property is classified as tangible, which includes cars, boats, RVs, and aircraft, or intangible, consisting of things like stocks, bonds, insurance policies, and intellectual property. Like real property taxes (those on your home), personal property taxes are an ad valorem tax, meaning they’re based on the value of the property.

Tangible personal property taxes typically fall from year to year as the property’s value decreases. The value of intangible personal property taxes is made using a method known as calculated intangible value (CIV).

Implications of Not Paying Property Taxes

Not paying your property tax bill can result in a cascade of financial and legal consequences. Initially, you may face penalties and interest on the overdue amount. This will steadily increase the amount you owe.

Failure to address the issue promptly can lead to a tax lien on your property. A tax lien gives the government a legal claim on your property. This can hinder your ability to sell or refinance the property, as you have to disclose whether or not there are liens/legal claims against your property during the sale process.

There is also an industry that will buy this debt. The National Tax Lien Association estimates that $21 billion of real estate property taxes go delinquent each year, with up to $6 billion of these taxes being auctioned off to private investors.

One of the more severe repercussions is the potential for foreclosure. If property taxes remain unpaid for an extended period, the government may initiate foreclosure proceedings. This means they take control of your property, auction it off, and use the sale proceeds to recover the outstanding tax debt. This impact extends beyond the immediate financial burden, as a foreclosure can have long-term effects on credit scores and the ability to secure loans or housing in the future.

When Are Property Tax Bills Typically Due?

Property tax due dates vary by location but are commonly set on an annual or semi-annual basis. The due date is predetermined by local tax authorities. Typically, tax bills are sent well in advance of the due date, providing property owners with sufficient time to make necessary arrangements for payment.

How Are Property Taxes Calculated?

Property taxes are typically calculated by multiplying the assessed value of a property by the local tax rate. The assessed value is determined through evaluations by tax assessors, taking into account factors like the property’s size, location, and features. The tax rate, set by local authorities, is a percentage applied to this assessed value. Additionally, specific local projects or services may result in additional assessments, contributing to the overall property tax bill.

Can I Pay My Property Taxes in Installments?

Yes, many jurisdictions offer installment plans to help property owners manage their tax payments. These plans allow taxpayers to spread the financial burden over multiple payments throughout the year.

What Happens if I Sell My Property Mid-Year?

In the event of a mid-year property sale, property taxes are typically prorated between the buyer and the seller. The buyer assumes responsibility for the portion of taxes owed for the remainder of the year, and a portion of this may be due at closing.

The Bottom Line

Everyone who owns real property is on the hook for property taxes, whether it’s for a house, farm, or vacant land. While you can’t get out of paying property taxes, you can deduct up to $10,000 in combined state and local taxes—including property taxes.

If your property taxes are rolled into your mortgage payment, note that your lender must pay the tax on your behalf before you can claim the deduction. Contact your lender if you have any questions about the payment schedule.

The ultra-wealthy spend a lot of money on luxury goods because they’re hard not to love. But are rare whiskey, designer handbags, and other expensive items also good investments? 

High-end watches and expensive art can be smart additions to your portfolio, but only if you know what you’re doing. Here’s what you need to consider when investing in luxury assets.

Key Takeaways

• Invest in luxury goods with a track record of appreciation.
• Build a strong traditional portfolio before considering luxury goods as a secondary investment.
• Success in luxury investing requires expertise and connections—ensure you have the knowledge to buy, sell, and authenticate assets properly.

What I’m Telling My Clients

There’s something satisfying about owning tangible assets, especially when markets are uncertain. But luxury investments shouldn’t be on your radar if you’re not financially secure. You should first build an ETF-based portfolio of stock and bond investments and then consider diversifying it with alternative assets (e.g., venture capital, private equity, cryptocurrency) and luxury goods likely to be appreciated over time. 

Focus on categories with proven track records and avoid purchasing items just because they’re expensive or popular. Pieces with historical significance, limited availability, or unique craftsmanship are your best bets. Also, make sure to build sufficient market knowledge and industry connections. Without them, it will be harder to find qualified buyers later.

Today’s market shows that art, jewelry, and watches are appreciating while previously popular investments like rare whiskey are declining.

Tip

Do your research and make sure there’s a strong authentication process before you purchase luxury goods.

Here’s what you can expect from investing in luxury items, according to the 2024 Wealth Report by Knight Frank:

The Bottom Line

Luxury goods can be a good way to diversify, but making them your main focus is risky. Anyone considering these investments should start with a solid traditional portfolio first. Once you have established financial security through these more conventional ways, you can consider expanding into luxury goods that have a proven track record of appreciation.

Pet food, frozen foods, vitamins, meal delivery, and a Starbucks licensing deal

Reviewed by Samantha Silberstein

Nestlé S.A. is the largest food and beverage company in the world and has made some major strategic deals since the 1970s. These deals include producers of vitamins, baby food, pet food, frozen food, and a meal delivery service—and even a giant licensing agreement with Starbucks that dwarfs the size of many of its takeovers. It also made no secret of its desire to expand into healthier foods, as obesity becomes a bigger problem. So who are some of these names?

Below, we’ll explore the Starbucks licensing deal and six of the most significant acquisitions in the company’s history. Nestlé does not provide a breakdown of the profits and sales that this licensing deal and these acquisitions contribute to the company.

Key Takeaways

• Nestlé is the world’s largest food and beverage company.
• Acquisitions and strategic deals have helped the company expand its offerings and market.
• The licensing agreement with Starbucks allows Nestlé to sell the coffee chain’s products in its stores.
• Other major acquisitions include Gerber, Purina, and Stouffer’s.

History of Nestlé

Nestlé (NSRGY) began as a producer of infant food in 1867. In 1905, the company merged with the Anglo-Swiss Milk Co. to become Nestlé Group. Nestlé survived World War I, and its products were a staple for U.S. servicemen in Europe during World War II.

Since World War II, the Swiss multinational mounted an aggressive expansion strategy, making a long string of major acquisitions. This helped it expand and strengthen its product portfolio. Nestlé’s total sales in 2023 were roughly 93.0 billion Swiss francs, or CHF, with a trading operating profit of 14.5 billion CHF. As of Jan. 21, 2025, the company’s market capitalization was approximately $210.22 billion.

Nestlé highlighted a shift toward healthier fare when it announced in 2018 the sale of its U.S. candy business to the Ferrero Group, one of the world’s largest chocolate and confectionery companies. It has divested other assets since then:

• In 2019, it sold its U.S. ice cream business for roughly $4 billion
• In early 2021, it sold its regional spring water brands, purified water business, and beverage delivery service in the U.S. and Canada for $4.3 billion

Nestlé has also made acquisitions in organic products, which are increasingly popular with consumers concerned about the environment and their health.

Note

Nestlé employs more than 2,000 brands that are sold in almost 190 countries.

Starbucks Licensing Deal

• Type of Business: Coffee
• Licensing Price: $7.15 billion
• Date of Closing: Aug. 28, 2018

One of the most important deals in Nestlé’s history is not an acquisition but a licensing agreement. We include it in this story because it constitutes one of the largest—and potentially most lucrative—deals in the company’s history.

In 2018, Nestlé agreed to pay Starbucks (SBUX) $7.15 billion for the rights to sell Starbucks-branded coffee in retail stores outside of Starbucks locations. This deal does not allow Nestlé to put its name on Starbucks products—only to sell those items in retail stores.

The deal strengthened Nestlé’s already-strong footprint in the coffee industry, with brands like Nescafe and Nespresso. Within 12 months of the agreement, Nestlé launched 29 Starbucks products across 40 countries. The market expanded to nearly 80 countries by 2023.

On Jan. 13, 2023, Nestlé acquired Seattle’s Best Coffee from Starbucks. As of November 2024, Nestlé is the top coffee company in the world.

Gerber Products

• Type of Business: Baby food
• Acquisition Price: $5.5 billion
• Date of Purchase: Sept. 3, 2007

Founded in 1927, Gerber Products was acquired by Nestlé in 2007. Gerber had nearly $2 billion in annual sales and was owned by pharmaceutical company Novartis AG before the acquisition.

In 2023, Nestlé’s Nutrition and Health Science division, which includes Gerber, accounted for 16.4% of the company’s total sales. Before the acquisition, Nestlé had no major presence in the U.S. baby food market. Nestlé prioritized the development of non-GMO and organic products to expand the Gerber brand.

Ralston Purina

• Type of Business: Pet foods
• Acquisition Price: $10.3 billion
• Date of Purchase: Dec. 11, 2001

Nestlé Purina PetCare was founded as the Robinson-Danforth Commission Co. in 1894 and later became known as Ralston Purina. Under Nestlé, Purina PetCare has dramatically expanded its global sales, with popular brands such as Friskies, Pro Plan, and Felix.

In 2023, Nestlé’s PetCare segment represented 20.3% of the company’s total sales. Ralston Purina fits well with the company’s aggressive growth strategy, as it expands the company’s base beyond its traditional focus on food and beverages for consumers.

Atrium Innovations

• Type of Business: Vitamins and supplements
• Acquisition Price: $2.3 billion
• Date of Purchase: March 8, 2018

Atrium Innovations is a maker of vitamins and nutritional supplements. It started as a subsidiary of a Canadian biotech company before being spun off in 2006. It was acquired in 2014 by an investment consortium led by private equity firm Permira Funds.

As consumers grew more health-conscious, Nestlé moved toward healthier brands and purchased Atrium in 2018. The deal boosts Nestlé’s participation in the vitamin and supplement market and serves a dual purpose: It expands Nestlé’s overall business and helps it to market itself as a healthier company.

Stouffer’s

• Type of Business: Frozen foods
• Acquisition Price: $105 million
• Date of Purchase: March 5, 1973

Stouffer’s was founded in 1922 and went on to build a national chain of restaurants over the next several decades. A key development for the company occurred in 1954 when Stouffer’s began to create frozen meals for sale. Stouffer’s became best known for its line of frozen food products.

Nestlé purchased Stouffer’s in 1973 from Litton Industries, a defense contractor that expanded to offer retail products, including microwave ovens. At the time of the acquisition, frozen meals were popular with consumers and Stouffer’s was a major brand.

Stouffer’s, one of Nestlé’s earlier deals, provided a template for future forays into healthier foods. In 1981, Stouffer’s launched its successful Lean Cuisine line of low-calorie frozen entrées.

Freshly

• Type of Business: Meal delivery service
• Acquisition Price: up to $1.5 billion
• Acquisition Date: Oct. 30, 2020

Freshly launched in 2012 as a meal delivery service, providing fresh, fully cooked meals to customers across the United States. The company offered a weekly subscription service, capitalizing on a growing trend of subscription delivery services across a variety of product areas. In 2020, the company delivered more than one million meals per week to about 20,000 U.S. ZIP codes.

Nestlé acquired Freshly the same year, maintaining it as a stand-alone company with complete control of its products and subscription pricing.

Nestlé’s acquisition helped it gain additional exposure to the growing market for healthy foods while also capitalizing on the rise of meal delivery services such as Blue Apron. Freshly ended meal delivery service and Nestlé divested a majority stake of Freshly in 2023.

The Bountiful Company (Core Brands)

• Type of Business: Supplements and nutrition
• Acquisition Price: $5.75 billion
• Acquisition Date: Aug. 9, 2021

Launched in 1971, The Bountiful Company is a nutrition company providing vitamins, supplements, and related products. Nestlé acquired The Bountiful Company’s core brands for $5.75 billion in August 2021, including Nature’s Bounty, Solgar, Osteo Bi-Flex, and Puritan’s Pride. Nestle folded these brands into Nestlé Health Science, to make it a global leader in nutritional supplements, vitamins, and minerals.

Nestlé Diversity & Inclusiveness Transparency

As part of our effort to improve the awareness of the importance of diversity in companies, we have highlighted the transparency of Nestlé’s commitment to diversity, inclusiveness, and social responsibility. The chart below illustrates how Nestlé reports the diversity of its management and workforce. This shows if Nestlé discloses data about the diversity of its board of directors, C-Suite, general management, and employees overall across a variety of markers. We have indicated that transparency with a ✔.

What Is Nestlé’s Largest Product Line?

Nestlé’s largest product line is the powdered and liquid beverages. Some of the most popular names in this segment include Nescafé, Nespresso, and Nesquik,

How Can I Invest in Nestlé?

Nestlé is a Swiss company whose shares trade on the SIX Swiss Exchange. You can invest in the company by purchasing American depositary receipts (ADRs), which trade over-the-counter (OTC) in the U.S. under the ticker symbol NSRGY. These can be bought and sold through a brokerage account. You can also buy and sell shares of mutual funds and exchange-traded funds (ETFs) that hold the company in their portfolios.

What Are Some of Nestlé’s Most Popular Brands?

Nestlé’s portfolio of brands includes more than 2,000 different names. Some of the most popular ones are Nescafé, KitKat, Nespresso, Maggi, Toll House, and Milo.

The Bottom Line

Nestlé is the world’s largest food and beverage company with a presence in almost 190 countries and over 2,000 brand names under its portfolio. Acquisitions and agreements, including the one with Starbucks, have helped the company expand its offerings and markets. If you’re an investor looking to capitalize on the company’s success, consider trading the company’s ADRs or shares of mutual funds and ETFs that have Nestlé in their portfolio.

Reviewed by Pamela Rodriguez

The answer to this question depends on who you ask, what you plan to do when you get there, and the precautions you’re willing to take while you travel. Some of the advice that you would give to a friend traveling in any U.S. city, including yours, would be the same advice you would follow when traveling around Thailand.

As is so often the case, some of your biggest fears—the threat of terrorism, for instance, or street crime—might be greater than your fear of crossing the road when the latter, statistically, would be a much more realistic threat.

Key Takeaways

• Regularly monitor the State Department’s website, where you can find current Travel Warnings, Travel Alerts, and the Worldwide Caution.
• Pedestrians don’t have the right of way—on busy intersections—without traffic lights, traffic is often controlled by the traffic police.
• Thailand has lots of fun activities to offer apart from spending lazy days on the beach.
• It’s a serious offense to defame, insult, threaten, or defile any image of the Thai royal family.
• Thailand will be safe as long as you exercise the kinds of cautions that are necessary anywhere in the world.

Informing Yourself Before You Travel

The State Department is one of the best and most thorough sources of information on how safe it is to travel to Thailand. It issues Travel Alerts and Travel Warnings for the parts of the world that pose any perceived threat to citizens traveling there.

As of July 24, 2023, the State Department issued a:

• Level 1 travel advisory to Thailand as a whole. This means that travelers should exercise normal precautions.
• Level 3 for the provinces of Yala, Pattani, Narathiwat, and Songkhla. This means that travelers should reconsider travel to these areas because of civil unrest and violence largely directed at Thai government officials. Areas of particular interest include Chana, Thepha, Nathawat, and Saba Yoi.

Any U.S. traveler in Thailand can get in touch with the American Citizen Services Unit of the U.S. Embassy:

• In Person: 95 Wireless Road in Bangkok
• By Phone: +66-2-205-4000
• By Email: acsbkk@state.gov

The American Citizen Services Unit in Bangkok also had an X (formerly Twitter) account, @acsbkk, but it was deactivated in October 2024.

Important

Travel Alerts are meant for short-term threats such as demonstrations or health-related events; Travel Warnings are for more serious threats such as terrorist attacks or civil wars. Click here for a U.S. Embassy and Consulate warning. Read the Country Specific Information for Thailand.

Some Firsthand Observations

Amy Rinehart, a 28-year-old American who lived and worked in Bangkok for two years, says that she felt absolutely safe on the streets of that country wherever she went, including “the mountains in the north, the beautiful beaches in the south and even in the organized chaos that is the capital city of Bangkok.”

Just after Rinehart arrived, the military staged a coup in Thailand. She says that she hardly noticed: “In one part of Bangkok, there were military police everywhere; two stops away on the Skytrain, you wouldn’t know anything was going on. The Thais are used to coups.”

And that’s not just the opinion of young travelers. Jennifer Stevens, executive editor of International Living, knows the older market, specifically folks considering retiring in Thailand. According to Stevens, “We feel very comfortable sending our readers to the parts of Thailand we recommend for retirement living. Places like Chiang Mai, Hua Hin, Koh Samui, and Phuket, for instance, we feel are quite safe. Thousands of expats living in Thailand are at once very happy there and indifferent to the political situation.”

The advice she’d give to travelers to Thailand, she says, is the same she would give to someone going to Rome: Don’t stay out late in seedy parts of town, don’t carry all your money and your passport on your person, etc. Some of the more likely dangers of traveling in Thailand are the traffic, local laws that are difficult for U.S. travelers to understand, and the risks inherent in the country’s many outdoor activities.

The Traffic

“Pedestrians don’t have the right of way in Thailand,” says Rinehart, “and motorcycles, the most popular means of transport, weave in and out of traffic at a dizzying rate.”

According to information passed on to us by Kathleen Peddicord, founder and publisher of Live and Invest Overseas, the combination of heavy traffic and inebriated drivers in some areas, like Phuket, poses a real threat.

And, “from a foreigner’s perspective,” she says, “the main ‘danger’ is being overcharged by tuk-tuks (three-wheeled motor-powered bikes); metered taxis are a safer alternative.”

Outdoor Adventures

From zip lining to hiking, mountain biking, swimming, and diving, visitors to Thailand can choose from a dizzying array of outdoor sports. Which they should, says Rinehart—but not without exercising some caution.

Some of the safety features of the sponsored adventures may not be quite up to the standards that U.S. folks are used to seeing. For instance, equipment may not be as safe, and first aid capabilities may not be all that great.

“Just do a little digging before you sign on,” Rinehart says.

Note

If you want to hunt around for cheap goodies, stick to the markets or bargain shopping malls such as MBK and avoid the brand names.

Watch What You Say About the Royal Family

For travelers from the U.S. who are used to the First Amendment of this country, it is difficult to comprehend how dire the results can be if you are accused by a Thai court of saying something that insults the royal family. In 2024, a man was sentenced to 50 years in prison for social media posts deemed damaging to the king.

How Safe Is It to Travel to Thailand?

Thailand is a relatively safe country to travel to, according to the State Department. According to the agency’s website, travelers should take normal precautions when they visit the country on an overall basis. But there are certain areas that visitors may want to avoid. As of July 2023, the State Department suggests that travelers reconsider visiting the provinces of Yala, Pattani, Narathiwat, and Songkhla because of civil unrest.

Should I Register with the State Department If I’m Traveling to Thailand?

You should register with the State Department if you travel to Thailand or any other location. Enroll in the Smart Traveler Enrollment Program with details of your trip. Doing so is free and voluntary, and can help the agency locate you when you need assistance in case of emergency. You can also register if you ever decide to live abroad.

Can I Use U.S. Currency While Traveling in Thailand?

Yes, you can use U.S. dollars while traveling in Thailand. You may also decide to use the national currency, the Thai baht, during your travels. Most merchants, including hotels, restaurants, retailers, and airlines, use major credit cards like Visa and Mastercard. You can also use your debit card to withdraw cash, which will be in the local currency. Check with your card issuer if there are any fees associated with foreign transactions. Keep in mind there may be fees and additional charges if you use your card at automated teller machines (ATMs) in Thailand.

The Bottom Line

Be especially alert and careful, but the odds are that your trip to Thailand will be safe as long as you exercise the kinds of caution that are necessary anywhere in the world. Heed the warnings of the U.S. Department of State.

Sign up with the department’s Smart Traveler Enrollment Program (STEP) so that the embassy or nearest consulate knows where to send you up-to-the-minute safety reports for Thailand, how to contact you if necessary, and so that it can help your family and friends get in touch with you in case of an emergency.

Thailand has a lot to offer travelers, no matter your budget. You can backpack Thailand on a limited budget, or you can live the luxurious travel life in fancy resorts on the beach.