S&P focuses on Independent research, credit ratings of large cap stocks of businesses by industry, market size & liquid capital of 500 top companies.
The Dow Jones Index is weighted on 30 blue chip stocks
NASDAQ is a guide that shows the market performance past, present & future company profiles for investing.
The OPRA is the Options Price Reporting Authority which is a national market system plan that provides market information on options.
A quote is the current market place for a particular stock or investment option, a dividend is a portion of earnings paid back to shareholders in the form of cash. A share of stock is a portion of that company’s assets & earnings; it means ownership in a company.
There are two basic types of stock: Common & Preferred.
Common is the type of stock that gives investors voting rights & receives dividends of the stock.
Preferred is the other type of stock that does not allow voting rights but if the company were to incur financial or legal trouble the holders of this stock type are the first to have a higher claim to earnings and assets.
An IRA account is used for retirement purposes, there are two: Traditional IRA & then you have a Roth IRA.
An IRA is an account that will be assessed penalties & taxes that can be charged when withdrawing money before it is allowed.
A Traditional IRA is tax deductible in the tax year contributions are made
A Roth IRA is contributions, taxed before the money is put into the account, after tax money.
With a Roth IRA, withdrawals are made at retirement they are taxable at your then tax rate which is typically lower than current rate.
The SEC (Securities, Exchange, Commission) & the NASD (National Association of Securities Dealers) both regulate brokers & online brokers.
The SIPC (Securities, Investor, Protection, Corporation) protects the customers of brokers’ investments by up to $500,000.
When setting up accounts you have options, you can set up:
Cash account which allows a person to use the funds available to purchase stocks, options or etc.
Retirement account allows a person options to choose a Traditional or Roth Account.
Education account is can be used for college savings and the child can access the funds when he/she reaches the age of majority, the rules vary by state.
& have options such as a
529 is a college savings account which is good because this type of account remains with the owner & the beneficiary can change.
Coverdell ESA account
Specialty accounts can be set up by Trust, Limited Partnership, Partnership and Corporation which generally requires an initial deposit of $2,000 or more.
When setting up a new account you will need the following:
ID or Driver’s License
Social Security Card
D.O.B.
Physical Address
Employment Information
Bank Information
Your account profile by selecting:
Cash
Cash & Option
Cash & Margin
Cash, Margin & Option
A cash account is typically the simplest form when set up by an individual owner.
A cash & margin option is typically used when a loan is given by a broker for higher investments, more than what you have in your cash account.
Warning! Trading stocks partial credit, on margin! When doing so you will be required to have a minimum deposit & is based on minimum account balances based on percentages & are very risky because if the stock drops you can be asked to deposit more cash or sell a portion of the stock.
Options are different from Stock, Options you have to sign a contract that states: you have trade certain number of stock or securities for a specific period of time at a pre-established price. They are very risky and they have specific requirements!
A Margin account allows you to trade stocks on partial credit by using a loan from your brokerage firm.
An Option account obligates you to trade a pre-determined amount of stock or security for a specific period of time at a pre-established price.
A Cash account allows you to use available funds in your account to purchase securities.
A Margin account allows you to trade stocks on partial credit by using a loan from your brokerage firm.
An Option account obligates you to trade a pre-determined amount of stock or security for a specific period of time at a pre-established price.
A Cash account allows you to use available funds in your account to purchase securities.
The Ask price is the lowest price at which a seller is willing to sell a share of stock & purchase a stock.
The Bid price is the highest price a buyer is willing to pay or sell a stock.
Last is the price the last trade for this stock is.
When placing an order for stock you can choose limit, market, stop market, stop limit, trailing stop% and trailing stop$.
A limit order is the highest price you are willing to pay and the lowest price you are willing to sell.
A market order is a certain number of shares at current price.
When placing an order you will have 90 seconds to review order, if you take longer the order will cancel.
Author,
Gigi King 12/24/2016
Sources Cited
http://www.fidelityinvestments.com
http://www.corporate.americancentury.com
http://www.personal.vanguard.com
Please consult a financial professional or broker when investing! I am not a financial advisor therefore I cannot solicit financial advice.
Dakota's Document Preparation 
Please consult a financial professional or broker when investing! I am not a financial advisor nor a financial professor therefore, I cannot solicit financial advice!
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Review Research Reports on the stocks of companies by using NASDAQ & the S&P 500. Please consult a financial professional or broker when investing! I am not a financial advisor nor a financial professor therefore, I cannot solicit financial advice!
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2017 is a new year let’s do something different with our money, save, invest & spend wisely! We all want more money and don’t know how to get it. In order to get different results we must try different things in order to get what we never had.
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2017 is a new year let’s do something different with our money, save, invest & spend wisely! We all want more money and don’t know how to get it. In order to get different results we must Do something we never did! 2017 the year of positive financial change.
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Brush up on your financial literacy!
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When you change the way you look at money than the way you look at money will change! –Gigi King
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