In order to get you started we have compiled a list of some of the common stock market terms.
This way you might be able to talk the talk before you walk the walk.
Stock Brokers: Stockbrokers come in all shapes and sizes.
Essentially stockbrokers guide their investors through the market.
Beginner investors often find it useful to have an active broker, who will tell them when to buy and sell stocks.
Stockbrokers take care of all of the buying and selling, the good ones stay on top of all the stock movements and the specialist ones take care of certain sectors of the market.
A broker generally provides their clients with up to date market results, trends and market hypothesis.
There are different kinds of brokers that offer different types and levels of services.
Full-Service Brokers: If you have the money to spend a Full-service broker is probably the easiest to way to navigate the market.
As the name suggest a full-service broke, will offer you their full service, which means they will give you reports and results on a frequent basis and will take a high commission for doing so.
Discount Brokers: As their name suggests a discount broker will charge you a lower commission.
In return you will receive a fair and reasonable service, but not an exubrent one.
Discount brokers don't give their clients reports, market analysis' or additional advice.
Discount Brokers are recommended for people who have been in the game for some time.
It is not expected that you will only use one type of investor, many use both the discount and full-service broker.
Online Broker: Most brokers (both full-service and discount brokers) have a website where they also provide online brokerage.
Online brokerage is the cheapest form of brokerage, mainly because the services are provided online rather than in person.
Trading Account: When you first start working with a broker, you will be asked to set you a bank account that your broker can access.
The amount you need to put in the account will be set your broker.
The broker will also require you to place their additional fees in that account , so that it doesn't become overdrawn.
You broker's annual or monthly fees will also be taken out of this account.
Cash Accounts: There are two types of trading accounts, one of which is the cash accounts.
Cash accounts do not have their own line of credit.
Which means the investor needs to stay on top of crediting the account as needed and must also pay the full market price for stock.
Margin Accounts: Contray to cash accounts a margin account provides the investor with a line of credit.
The investor is able to purchase their stocks on a margin.
Investors with margin accounts are able to purchase more stocks than those with cash accounts.
Which also means they can profit more, and lose more.
Margin accounts are therefore the riskier of the two and are not recommended as a starting point.
Once you have thought about what kind of brokerage you are looking for and what kind of trading account you will be using, you have to decide on a broker.
The best place to start is price comparisons, followed by recommendations and 'gut feelings'.
No matter what type of broker you chose you will need to make sure that you keep your eye on your funds, the market and your broker.
This way you might be able to talk the talk before you walk the walk.
Stock Brokers: Stockbrokers come in all shapes and sizes.
Essentially stockbrokers guide their investors through the market.
Beginner investors often find it useful to have an active broker, who will tell them when to buy and sell stocks.
Stockbrokers take care of all of the buying and selling, the good ones stay on top of all the stock movements and the specialist ones take care of certain sectors of the market.
A broker generally provides their clients with up to date market results, trends and market hypothesis.
There are different kinds of brokers that offer different types and levels of services.
Full-Service Brokers: If you have the money to spend a Full-service broker is probably the easiest to way to navigate the market.
As the name suggest a full-service broke, will offer you their full service, which means they will give you reports and results on a frequent basis and will take a high commission for doing so.
Discount Brokers: As their name suggests a discount broker will charge you a lower commission.
In return you will receive a fair and reasonable service, but not an exubrent one.
Discount brokers don't give their clients reports, market analysis' or additional advice.
Discount Brokers are recommended for people who have been in the game for some time.
It is not expected that you will only use one type of investor, many use both the discount and full-service broker.
Online Broker: Most brokers (both full-service and discount brokers) have a website where they also provide online brokerage.
Online brokerage is the cheapest form of brokerage, mainly because the services are provided online rather than in person.
Trading Account: When you first start working with a broker, you will be asked to set you a bank account that your broker can access.
The amount you need to put in the account will be set your broker.
The broker will also require you to place their additional fees in that account , so that it doesn't become overdrawn.
You broker's annual or monthly fees will also be taken out of this account.
Cash Accounts: There are two types of trading accounts, one of which is the cash accounts.
Cash accounts do not have their own line of credit.
Which means the investor needs to stay on top of crediting the account as needed and must also pay the full market price for stock.
Margin Accounts: Contray to cash accounts a margin account provides the investor with a line of credit.
The investor is able to purchase their stocks on a margin.
Investors with margin accounts are able to purchase more stocks than those with cash accounts.
Which also means they can profit more, and lose more.
Margin accounts are therefore the riskier of the two and are not recommended as a starting point.
Once you have thought about what kind of brokerage you are looking for and what kind of trading account you will be using, you have to decide on a broker.
The best place to start is price comparisons, followed by recommendations and 'gut feelings'.
No matter what type of broker you chose you will need to make sure that you keep your eye on your funds, the market and your broker.
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