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As long as the money in your account is tied up in securites are you not at risk of losing your money if the brokerage firm goes under?
Wiki User
∙ 14y ago
Your money in securities will be lost only if the organizations or firms of which you hold securities go bust. Let us say you hold 1000 shares of Google Inc through XYZ brokerage firm. As long as google is stable and in business, irrespective of the XYZ firms status, your securities are safe. XYZ is just a custodian and can only hold on to your securities for safe keeping. They cannot use or pledge or sell your securities without your written consent/authorization.
Wiki User
∙ 14y ago
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What is a money market interest rate?
The money market interest rate fluctuates every day. This refers to how much interest is paid daily to the holder of a type of savings account. The account is usually held by a brokerage house. The holder of the account can withdraw these funds very quickly. This is a popular type of account with both casual and serious investors.
What is an on margin purchase?
A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral. Usually done using a margin account at a brokerage, and subject to fairly strict SEC regulations.
What is a brokerage firm?
A discount brokerage firm will help you with different types of investments. They will help you match up your money with types of investments that best fit your financial goals.
What are some dangers of money market investing?
The use of money market investing comes equipped with some inherent risks. These risks include: the chance of losing the principle or the original sum invested, losing any interest that is earned through inflation, and the possibility of having to keep adding more money to the account.
How does the FDIC protect non-banking stockholders?
The FDIC will cover your cash balance in your brokerage/investment account- but only if you signed up for an FDIC-insured cash account. If your cash balance is stored in a cash account as opposed to a money market account, the cash is stored in an account that counts as a savings account. This way, your cash balance can be insured by the FDIC while your invested amount is riding the stock market wave...
What do I want with my brokerage account?
If you have a brokerage account but you don't know much about investing then a stock broker may be what you need. There are many brokerage firms that can help you with where to invest your money.
Money transfers into brokerage accounts?
Demetrice, can i receive a money transfer to my mortgage account and once it post withdraw from it...without applying it to my account
Where can one purchase a silver etf?
"You can buy any type of ETF through a stock broker. Open up a brokerage account at your favorite brokerage, deposit money in the account, and buy the eft."
Do you need an online brokerage account if you want to start purchasing stocks?
It is best that you have an online brokerage account to help you when purchasing stocks. It is known to be less expensive to find one online as well and you knwo your money is secure.
When can spend your stock market profit?
Any good brokerage account should let you link your bank account so that you can transfer money from one to the other. With that said, the type of your brokerage account matters. If it's a retirement account, like a 401(k) or an IRA, your age and the guidelines for the account govern if you'll have to pay any penalties or fees and what kind of taxes you have to pay. Similarly, if it's a regular brokerage account, you'll probably have to pay taxes at the end of the year. This means the answer is "It depends" but also "When you get the money in your bank account, as long as you're sensible about how much you spend and if you save enough to pay taxes and fees."
What kind of bank account millioners use for example what kind of account should i have for keeping 20 million dollars?
Millioners would use a brokerage-based cash management account to keep their money in.
What is marginal money?
Margin is a line of credit issued to an investor typically from a brokerage firm using other investments held in the account as collateral.
What are MoneyMarket accounts used for?
MoneyMarket accounts, is like a savings account. It is most similar to a brokerage in that you deposit money in it, the high interest with high minimum requirements. To answer your question, the purpose of it is to make money.
What is a money market interest rate?
The money market interest rate fluctuates every day. This refers to how much interest is paid daily to the holder of a type of savings account. The account is usually held by a brokerage house. The holder of the account can withdraw these funds very quickly. This is a popular type of account with both casual and serious investors.
What are the benefits to opening up an online brokerage account?
Firstly, they are good and will help you keep your money. Unfortunately, with all the hubbub lately, hacking and identity theft have become more frequent. Your money might be at risk.
What are the chances of getting a job in real estate?
If you want to be an agent, it's easy. In Florida, where I work, the brokerages will hire anyone with a license practically. This is because every agent has to pay the brokerage to work there. You pay monthly fees and/or a split of whatever you earn. So the brokerage isn't losing any money by hiring you, and they stand a chance of making money off you if you are any good.
How do you prevent losing money in a joint bank account when one person is filing Chapter 7 bankruptcy and the other is not?
You don't, if you want to keep your money, don't share you account with some who won't take care of it.
