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Apr 5, 2024 · A brokerage account is an investment account that allows you to buy investments like stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Many people have other investment accounts, such as a 401 (k) through an employer, an IRA (traditional or Roth), or a health savings account (HSA).
- Balance Sheet. The balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It presents the company’s assets (what it owns), liabilities (what it owes), and shareholders’ equity (the difference between assets and liabilities).
- Income Statement. The income statement, also known as the profit and loss statement or P&L, summarizes a company’s revenues, expenses, gains, and losses over a specific period.
- Cash Flow Statement. The cash flow statement tracks the inflow and outflow of cash within a company during a specific period. It categorizes cash flows into three main activities: operating, investing, and financing.
- Statement of Retained Earnings. The statement of retained earnings, sometimes called the statement of owner’s equity, shows the changes in a company’s retained earnings over a specific period.
- Accounts Payable. Accounts Payable refers to the money a company owes to its creditors or suppliers for goods and services purchased on credit. It represents a liability on the company's balance sheet until payment.
- Balance Sheet. The Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific time. It presents the company's assets, liabilities, and shareholders' equity, enabling stakeholders to assess its financial health.
- Cash Flow. Cash Flow represents the movement of cash into and out of business over a specific period. It provides insights into a company's ability to generate cash and meet its financial obligations.
- Depreciation. Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the asset's value decrease due to wear and tear, obsolescence, or other factors.
Learn what an income sheet is, its components, and how it helps businesses track financial performance and profitability. Use our accounting definitions guide to discover terms, meanings, and how specific accounting words are used by bookkeepers and CPA's.
- Understanding Brokerage Accounts
- Types of Brokerage Accounts
- How to Choose A Brokerage Account
- How to Open A Brokerage Account
- Standard Brokerage Account vs. Ira Brokerage Account
There are several types of brokerage accountsand brokerage firms, giving investors the chance to choose the model that best suits their financial needs. Some full-service brokers provide extensive investment advice and other services but charge high fees. On the other end of the compensation spectrum, most online brokers provide a secure interface ...
Full-Service Brokerage Accounts
Investors seeking the expertise of a financial advisor can consider full-service brokerage firms such as Merrill, Morgan Stanley, Wells Fargo Advisors, and UBS, among others. Financial advisors are paid to help their clients develop investment plans, execute their transactions, monitor their investments and the markets, and more. Financial advisors work on either a nondiscretionary basis, where clients must approve transactions, or on a discretionary basis, where transactions don't require pr...
Discount Brokerage Accounts
Investors who favor a do-it-yourself investment approach might consider a discount brokerage firm. These firms charge significantly lower fees than their full-service counterparts. However, discount brokerage firms, such as Charles Schwab (SCHW), Fidelity (FIS), and E*Trade (ETFC), offer fewer services in exchange for these lower fees. This may suit investors who are most concerned with keeping costs low and executing trades via easy-to-use online trading platforms. For example, an investor w...
Robo-Advisor Accounts
Robo-advisors are accounts where they, not the account holder, select the investments using algorithms without human participation. Moreover, those investments are usually restricted to mutual funds or ETFs. The cost can be around 0.25% to 0.50% of assets under management per year.The minimum required to open an account can range from $0 to $500 to over $5,000. Robo-advisors might be right for people new to investing and experienced investors who prefer a hands-off approach to portfolio manag...
When opening a brokerage account, don't settle for the first one you find. It's essential to ensure you choose the right one. The first step to choosing the right brokerage accountis to consider your needs. Are you an active or passive investor? Are you looking to focus only on mutual funds, ETFs, stocks, bonds, other securities, or a combination o...
Opening a brokerage accountis a simple process that takes just a few minutes. Once you’ve selected a firm and the type of account you want to open (taxable or tax-advantaged), get the following personal information ready: 1. Your Social Security number (or tax identification number) 2. Your driver’s license, passport, or other government-issued ID ...
Investors can open a standard brokerage account and an individual retirement account (IRA). In fact, you can open an IRA even if you already have a workplace retirement plan, such as a 401(k). It's a good idea because it gives you an additional tax-advantaged opportunity to save for retirement. Knowing the difference between a standard brokerage ac...
Learn about commonly used terminology as it relates to Initial Public Offerings (IPOs) from Fidelity Investments.
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Jun 2, 2023 · Accounting is the process of tracking and recording a business’s financial transactions. Accounting basics include understanding assets, liabilities, equity, revenues, and expenses, as well as relevant financial statements and accounting principles. Accounting glossary.
