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Glossary entry · What you own
Broker
Definition
A regulated company that holds your investment account and executes orders to buy or sell on your behalf. Modern online brokers usually charge nothing per trade. Pick one that's well regulated, has low fees on the products you actually use, and has been around for at least 5-10 years.
Example
Interactive Brokers, Fidelity, and Vanguard are common low-cost brokers in the US.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
Read →