 Prop Accounts: Requirements: Must complete two exams.

Minimum account balance required: Typically $5,000

1. Module 1: Language of the Stock Market Buying power: 20x

After completing this module, you will be able to define stock

market terminologies including:

 Stock
 Bulls and bears stock market
 Bid and an offer
 Going Long or short on a stock
 Investor and a day trader

Trading Accounts
 Retail Accounts: Examples: TD Ameritrade, Charles
 Standard Accounts: Notes section Examples: Robinhood, Shwab, Interactive Brokers, etc.. Minimum account balance
Webull, etc.. Minimum account balance needed: None required: $25,000 Buying power: 4x
Buying power: 1x
 Market Maker: For day traders, the market maker refers to Market Terms
a tool used to evaluate stock prices and create purchase/sell
orders.  For day traders, the market maker refers to a tool used to
evaluate stock prices and create purchase/sell orders.
 What is Buying Power? The amount of money you have
available in your trading account and the amount of money a
firm will afford you to trade with.

 The SPY/S&P 500: The SPY, or S&P 500, is an index fund

comprised of 500 large- and mid-cap stocks selected by a
committee based on the market size, liquidity, and industry.
 Market Order: A market order is a simple order placed to
buy or sell stocks at the current market price.
  Size: The number of shares of the particular stock available
to buy (in hundreds).
 Limit Order: A limit order is a "take profit" order placed to
buy or sell a set amount of stock at a specific price or better.

 The Bid: The bid price represents the highest current price
someone is willing to pay for a particular stock.
 The Ask: The ask price represents the lowest current price
someone is willing to sell their stock for.
Long & Short

 Shorting Stocks: When a trader shorts a stock they

are commonly selling shares of a stock they do not
currently own. To fulfill the order they will borrow those
shares from a firm with an agreement to pay for them
at market price at a later date with hopes that the price
of the stock will go down at a later time. This allows the
investor to make a profit by selling the stocks higher
than what they paid for them. It is essentially just
buying and selling in reverse.
 In the event that the stock prices continue to rise,
however, the firm from where you borrowed the stocks
might issue a call. A call meaning; the request to pay
for the stocks now. This is how you lose money on
shorting stocks.
 Longing Stocks: This is simply the act of buying
shares of a stock with the hopes that the price will
increase and you will be able to eventually sell them for
more than what you paid for them.