Good morning. It's Thursday, Nov. 13, and welcome to this week's Business & Finance newsletter. This week, we're covering the US dollar, IRAs, and, last but not least, Nvidia, which just last month became the first-ever company to have a market cap of more than $5T. We'd love to hear what you think of our switch to covering three topics per week instead of just one—feel free to hit reply to this email to send us your thoughts!
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—Phoebe Bain, 1440 Business & Finance Section Editor |
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The dollar, explained
Also referred to as the Federal Reserve note and abbreviated as USD, the US dollar is the official currency of the US. It’s not only the most circulated currency in the world but also considered one of the most stable.
Near the end of World War II in 1944, dozens of nations gathered in New Hampshire and agreed to peg their currencies to the US dollar due to its relative stability. The dollar began to dominate global trade soon after.
Today, under the Treasury Department, the Bureau of Engraving and Printing produces all circulating paper money. But how paper money in the US is produced has changed frequently since 1690, when the Massachusetts Bay Colony became the first of the 13 original colonies to issue it.
US banknotes are made up of 75% cotton and 25% linen. By the end of 2024, there were roughly 55 billion banknotes in circulation, totaling about $2.3T.
Also, check out ...
> Contrary to popular belief, the $2 bill is still in circulation today. (More)
> The US once had a $100K bill. (More)
> What does the eye on the $1 bill signify? (More)
> Find the value of a dollar dating back to 1635. (More)
Explore everything else we've found on The Dollar. |
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Individual Retirement Accounts |
Inside IRAs
Individual retirement accounts, or IRAs, are tax-advantaged investment accounts that help individuals save for retirement. The money you put into an IRA is used to invest in stocks, bonds, and other assets.
Anyone who earns an income—regardless of whether they are a full-timer, a part-timer, or a contractor—can open and invest in an IRA. IRAs are often good solutions for people who don’t have the option to invest in a 401(k) (1440 Topics)—or for those who want to put even more money aside for retirement.
Depending on the type of IRA someone gets, they will have access to either a tax-deferred or a tax-free withdrawal account.
Traditional IRAs are tax-deferred—meaning you’ll pay taxes when you withdraw funds during retirement, rather than before you invest in the IRA. To invest in a Roth IRA, on the other hand, you must contribute money that has already been taxed—meaning that during retirement, you won’t pay any taxes when you make withdrawals.
Also, check out ...
> A spousal IRA allows a working spouse to contribute to an IRA on behalf of their nonworking partner. (More)
> Roth IRAs were first introduced in the Taxpayer Relief Act of 1997. (More)
> Explore the key differences between 401(k) plans and IRAs. (More)
> Visualize America's retirement savings by age. (More)
Explore everything else we've found on IRAs. |
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Nvidia 101
Nvidia designs and sells semiconductor chips that companies like Microsoft and Cisco use to run everything from video games to cloud servers and supercomputers. The company is also known as a leader in the AI revolution.
Founded in 1993 by CEO Jensen Huang and engineers Chris Malachowsky and Curtis Priem after coming up with the idea in a Denny’s, Nvidia scored $20M in funding from Sequoia Capital and Sutter Hill Ventures before going public in 1999. Today, it’s the world's leading semiconductor company, with a market cap surpassing $2T.
As of May 2024, Nvidia was worth more than Meta, Tesla, and Netflix combined—with value to spare. Virtually every Big Tech company, including Amazon, Meta, and Google, uses Nvidia chips.
Nvidia’s stock surged in recent years as AI hype rose to a fever pitch. But investors could soon demand the companies powering AI models with Nvidia’s chips show a return on investment.
Also, check out ...
> Over half of Nvidia’s revenue comes from outside the US. (More)
> Nvidia founder Jensen Huang would not do it again. (More)
> What are semiconductor chips? (More)
> Who are Nvidia's competitors? (More)
Explore everything else we've found on Nvidia. |
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One Story We're Taking Stock In |
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I've always been curious about the ever-evolving role of college education in American society. So when I saw a headline implying that a large tech company—the kind one might assume only offered its high-salaried desk jobs to those with bachelor's degrees from elite universities—was running a program encouraging teens not to go to college, my interest was piqued.
Specifically, the data analytics company Palantir is offering a four-month fellowship for high school graduates who may have a shot at a full-time offer upon completing the program. One 18-year-old even turned down a full scholarship to Brown University, opting for the Palantir fellowship instead. |
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> Palantir thinks college might be a waste—so it's hiring high school grads. (Read) |
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> The university system has an enrollment problem. (1440 Topics) |
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Roughly 88% of international transactions involved US dollars in 2019. |
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