SIPC was created to protect the investor in the case of fraud or bankruptcy.
Does not cover ordinary market loss when securities can fall in value.
Have you ever wondered what would happen to your stocks if something ever happened to Stockpile? Has it been a deterrent in getting started?
Investing your hard-earned dollars can be scary, man! That’s why Stockpile is a paying member of SIPC. (Hint: Pronounced like sip-ick, say it at a party at people will think you’re really smart). It’s basically insurance for your stocks in case anything should ever happen to us here at Stockpile. The same way you pay for your car insurance in case there is an accident, we pay for your investment insurance.
A person who owns stock is called a stockholder or shareholder.
When you own stock, you own a small piece of a company. Stock comes in units that are called shares. A person who owns shares of stock is called a stockholder or a shareholder. Companies are typically divided into millions, tens of millions, or even billions of shares. For example, Facebook (FB) is divided up into 2.35 billion shares.
When you own stock, you own a piece of the company. This means you own a share of the company’s profits and assets. It also means you have a special relationship with the company that other people don’t have. You even have a say in how it’s run because you can vote, attend shareholder meetings, and more.
A brokerage firm is a company that is licensed to buy and sell stocks. Brokerages provide you with a connection to the stock market and charge a commission when you make a stock trade. Some brokerages charge you just to have a brokerage account. A broker is a stock salesperson.
Don’t wait until you can afford whole shares. Fractional shares make it easy to start with only a few dollars.
You’ve heard the saying, “Buy low, sell high,” right? People on Wall Street would love to be able to say, “I’ll buy this stock today because it’s going up tomorrow.” Unfortunately, that crystal ball doesn’t exist. No one can time the market, so don’t bother trying!