Broker Basics
The type of financial firm that executes buy and sell orders for investors.
What is a brokerage?
You do this when you want to get stocks.
What is buying?
The type of account you open to buy stocks using your own money.
What is a brokerage account?
This broker is one of the oldest in the U.S. and has a famous logo of a running man.
What is Charles Schwab?
Some brokers give you free trades, which means no money is taken for buying or selling stocks.
What is commission-free trading?
Brokers help you trade these types of investments, like stocks or ETFs.
What are securities?
You do this when you want to get rid of stocks.
What is selling?
An account for retirement that can help you save on taxes.
What is an IRA?
This app made trading easy for beginners and caused the “meme stock” trend.
What is Robinhood?
Some brokers charge this yearly just to keep your account open.
What is an account fee?
This is the money a broker earns for helping you buy or sell an investment.
What is a commission?
This lets you buy a little of a stock every month automatically.
What is dividend reinvestment?
An account for a child managed by a parent or guardian.
What is a custodial account?
This broker is part of Morgan Stanley and is known for $0 trades.
What is E*TRADE?
This is what you pay if you borrow money to buy stocks.
What is interest?
Brokers help make trading easier by using this, which connects buyers and sellers.
What is the stock market?
The price difference between buying and selling a stock is called this.
What is the spread?
A trading account when you don't own the capital.
What is a funded account?
A famous brokerage that started in 1792 and is also an investment bank.
What is Merrill Lynch?
A fee for using leverage or borrowing money to buy more stocks than you can with your own cash.
What is a margin fee?
A broker is called this when it follows laws and is overseen by agencies like the SEC or FINRA.
What is regulated?
The way people can bet on a stock going down.
What is shorting?
The type of firm that hands out funded accounts.
What is a proposition firm?
This person runs Berkshire Hathaway.
Who is Warren Buffett?
A type of diversified investment with low fees.
What is an index fund?