A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Margin AccountA brokerage account that lets you borrow money to invest, which can boost gains but also magnify losses.
- Brokerage AccountAn account you open with an investment firm to buy and sell stocks, bonds, funds, and other investments.
- Settlement PeriodThe short window after a trade during which money and shares officially change hands.
- BrokerA firm or person that carries out your orders to buy and sell investments, often for a fee or commission.
- Taxable AccountA standard investment account with no special tax breaks, where gains and dividends are taxed each year.
- LiquidityHow quickly and easily you can turn an investment into cash without moving its price much.
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Plain-English education — not personalized legal, tax, or investment advice.