Brokerage Account Flashcard

Front

What is a brokerage account used for?

Back

It’s a type of account used to buy and sell stocks, bonds, and funds.

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What is a robo-advisor?

Back

A computer program that manages investments based on goals and timeline.

Front

What is a broker?

Back

An individual or firm that acts as an intermediary between an investor and a securities exchange.

Front

What is the role of a broker in a brokerage account?

Back

Acts as a middleman between you and the investments.

Front

What is a key feature of a managed brokerage account?

Back

Investment management from a human advisor or robo-advisor.

Front

What is the difference between a brokerage account and a savings account?

Back

A brokerage account is used for buying and selling investments, while a savings account is used for saving money with interest.

Front

What are stocks?

Back

Stocks are shares of ownership in a company.

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What are bonds?

Back

Bonds are debt securities issued by corporations or governments to raise capital.

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What is an investment portfolio?

Back

An investment portfolio is a collection of financial assets like stocks, bonds, and cash.

Front

What is diversification in investing?

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Diversification is the practice of spreading investments across various assets to reduce risk.