Brokerage Account

Intro to Stocks

​What are Stocks?

​ A stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings.

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As an owner (shareholder), you are entitled to your share of the company’s earnings as well as any voting rights attached to the stock.

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How Do I Trade Stocks

​Most stocks are traded on exchanges such as the New York Stock Exchange or NASDAQ. The NYSE is a physical location whereas NASDAQ is a virtual market.

​​Exchanges are simply places where buyers and sellers meet and decide on a price

for a stock.
Think of it as a flea market where buyers and sellers come together and agree on a price for a product.

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What is a Broker?

​A broker is a financial professional who buys and sells stocks on behalf of clients.

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What is a Brokerage Account

​A brokerage account is an investment account that allows individuals to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs) 1.

It serves as a platform for investors to manage their investments and build a personal investment portfolio

What are the different types of brokerage accounts and how can I use them to trade? 

Multiple Choice

Pros of Having a Brokerage Account...

• Unable to diversify investment portfolio
• No access to expert advice
• Invest in various financial products, access research tools, receive expert advice, diversify investment portfolio
• Get limited investment choices

Multiple Choice

The Cons of a Brokerage Account...

• Potential fees, lack of personal control over investments, risk of fraud or mismanagement
• No risk of fraud, high returns, minimal effort required
• Complete control over investments, no fees, guaranteed profits