The term custodial account generally refers to a savings account at a financial institution, mutual fund company, or brokerage firm that an adult controls for a minor (a person under the age of 18 or 21 years, depending on the laws of the state of residence). Approval from the custodian is mandatory for the account to conduct transactions, such as buying or selling securities.

Stock consists of all of the shares into which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares.

A fractional share is when you own less than one whole share of a company. Fractional shares allow you to purchase stocks based on the dollar amount you want to invest, so you may end up with a fraction of a share, a whole share, or more than one share.

ETF stands for “exchange-traded fund” which is a collection of stocks or other assets. When you buy an ETF, you’re buying all of the stocks that are in the ETF without having to buy each one separately. Just like stocks, ETFs are traded on an exchange and, because of that, they can be bought and sold throughout the day. They usually track an index like the S&P 500 or the Dow Jones Industrial Average (DIA and SPY are two of the most popular). When these indexes go up or down, so does that ETF’s price and the value of your investment. ETFs have become very popular because they help diversify your portfolio and because their costs are lower than traditional mutual funds.

Due to the way stocks are traded, investors can lose quite a bit of money if they don't understand how fluctuating share prices affect their wealth. ... Remember—while stock markets have historically gone up over time, they also experience bear markets and crashes where investors can and have lost money.

The Securities and Exchange Commission has specific rules concerning how long it takes for the sale of stock to become official and the funds made available. The current rules call for a three-day settlement, which means it will take at least three days from the time you sell stock until the money is available.

There are many options available through which you can learn stock market basics.

• Read books.
• Follow a mentor.
• Take online courses.
• Get expert advice.
• Analyze the market.
• Open a brokage account.

A brokerage firm is simply a place where investors and traders go for buying and selling stocks. The firm acts as a middleman between buyers and sellers and provides a trading platform for everyone. It charges a commission on these transactions. Every time an investor buys a stock, a transaction fee is charged.

The SIPC {Securities Investor Protection Corporation) is a federally-mandated, private non-profit that insures up to $500,000 in cash and securities per ownership capacity, including up to $250,000 in cash. If you have multiple accounts of a different type with one brokerage, you may be insured for up to $500,000 for each account.

SIPC protects stocks, bonds, Treasury securities, certificates of deposit, mutual funds, money market mutual funds, and certain other investments as "securities." SIPC does not protect commodity futures contracts (unless held in a special portfolio margining account), or foreign exchange trades, or investment contracts ...

Yes, you will be enrolling your stock in a major/top brokerage firm that is backed by the SIPC {Securities Investor Protection Corporation).  This SPIC is a federally-mandated, private non-profit that insures up to $500,000 in cash and securities per ownership capacity, including up to $250,000 in cash. If you have multiple accounts of a different type with one brokerage, you may be insured for up to $500,000 for each account.

SIPC protects stocks, bonds, Treasury securities, certificates of deposit, mutual funds, money market mutual funds, and certain other investments as "securities." SIPC does not protect commodity futures contracts (unless held in a special portfolio margining account), or foreign exchange trades, or investment contracts ...