Stocks are tiny parts of the company. The stock price (also called a "share") reflects the value of the company, as it is

determined by the people trading the stock (traders and investors). Stocks do not have a fixed set price, they continually

fluctuate, each second of each day.


Stocks are traded on an exchange, such as the New York Stocks Exchange, which is open during 9:30 PM to 4:00 PM Eastern

time. The majority of the transactions, buying and selling stocks take place during these hours, even though some trading

occur outside these hours; it is called pre-market and after-hours trading.


You may decide to buy stocks on a certain price and then try to sell them at a higher price to make profits, or you may already

have stocks and sell first, so you try to buy it back at a lower price to make a profit. The second decision is called short selling;

short- term traders do it all the time, while long-term investors tend to avoid it.


Stock Order Types

A market order is an order to buy or sell a stock at the best current

price available in the market. A market order does not guarantee a

specific price, but it does guarantees execution.


A limit order is an order to buy or sell a stock with a restriction on the

maximum price to be paid or the minimum price to be received (the



A stop order is an order to buy or sell a stock at the market price

once the stock has traded at or through a specified price (the “stop”).


Time-in-force orders

These specify how long an order will remain active before being

executed or expired.





Exclusive Account

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