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Clear filtersAccount Types
The account a security is held in changes what can be done with it, how it is taxed and who has a claim on it. It is a structural decision, not an administrative one.
Cash and Margin Accounts
A margin account borrows against the securities in it. That changes settlement, enables short selling, and introduces a lender with the right to close positions.
Buying Power
The number a platform shows as available is a calculation with several inputs, and it is not the same as the money in the account.
SIPC, FDIC and What Is Actually Protected
Account protection covers the failure of the firm holding your assets. It has never covered the possibility that an investment loses money.
Checking a Broker Before Sending Money
Registration, disciplinary history and custody arrangements are all public and take a few minutes to check. Almost every large fraud fails at the first of them.
Reading a Brokerage Statement
A statement reconciles a period. The sections that get skipped are the ones that reveal costs, corporate actions and errors.
Transferring an Account
Moving positions between firms is a standardised process that preserves holdings and cost basis. Selling and rebuying is a different thing entirely.
Fractional Shares
A fraction of a share is a position held by the broker on your behalf. It behaves like a share in most respects and differs in several that matter.
Dividend Reinvestment
Automatic reinvestment buys more of the same security with each distribution. It compounds, and it makes every distribution a purchase with tax and record-keeping consequences.
Trade Confirmations
A confirmation is the legal record of a transaction and it carries disclosures that appear nowhere else, including how your broker acted and what it was paid.