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Open Account with stock trading company

Glossary

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  Backup Withholding
  An IRS procedure designed to ensure that a taxpayer who does not have a Social Security number or tax identification number will still have taxes withheld on his/her income.
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  Bear
  A bear market means that the economy is bad, stocks are dropping, and jobs are scarce. Investors who have a pessimistic outlook, and believe that stock prices will fall, are commonly called bearish investors, or bears.
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  Beneficiary
  The Beneficiary is the person who will inherit the account in the event of the Account Holder�s death. With an ESA or Custodial Account, a Beneficiary is the person for whose benefit the account is opened.
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  Bid
  The price at which a buyer of a security is willing to buy a stock.
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  Blue Chips
  A stock that represents a financially strong company with a long track record of dividend payments and financial solvency. These are called "blue chips" because traditionally, blue chips were the most expensive chips in poker.
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  Board of Directors
  The Board of Directors is a group of individuals elected by the shareholders of a public company. The Board determines corporate policy, such as management issues, major business decisions, payment of stock dividends, etc. Every publicly traded company is required to have a Board of Directors.
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  Bonds
  A bond obligates the issuer, or the company who issued the bond, to pay the bondholder, or the person holding the bond, the original amount of the bond plus interest. Companies typically issue bonds to raise capital. A company will issue the bond, pay interest on the amount borrowed, and then redeem the bond by paying the bondholder the original amount that was borrowed.
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  Brokerage
  A firm that acts as an intermediary between an investor and the stock market. The investor deposits funds, and then places trades through the brokerage. The brokerage holds the funds and the stock for the investor.
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  Broker-Dealer
  A broker-dealer acts as a regular brokerage, but also participates in the markets itself. When acting as a broker, the firm executes trades for its clients. When acting as a dealer, the firm also executes trades for its own account.
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  Bull
  The bull symbolizes supreme confidence, and healthy rising markets in good economic times. Investors who have an optimistic outlook, and believe that stocks will rise, are commonly called bullish investors, or bulls. This is great in a rising market, but when the economy turns south, it may be prudent to adopt a different strategy.
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