It is either added to the amount you pay when you buy securities, or deducted from the amount you get when you sell. Online and discount brokers charge lower commissions than traditional brokers, but offer limited investment advice. Dividend A taxable payment given to shareholders from the company s current or retained earnings. The low represents the lowest price of a security in the given period. An order to a broker to buy a certain stock at or below a specified price, or to sell it at or above a specified price.
Some brokers charge a higher commission for limit orders than for market orders.
Margin, Buying on A transaction in which an investor borrows to buy additional shares, using the shares themselves as collateral. If the price of these shares drops below a certain level, the investor will get a margin call, meaning that he or she must deposit additional funds into their margin account. CPAs urge investors to use caution when buying on margin. An order for immediate execution given to a broker to buy or sell at the best obtainable price. The current selling price of a particular stock.