Question 1

What is a brokerage in simple terms?

Accepted Answer

A brokerage is a company that lets you buy and sell investments like stocks and ETFs. It connects your account to the exchanges where trades actually happen, so you cannot place a trade without one.

Question 2

What is the difference between a market order and a limit order?

Accepted Answer

A market order fills right away at the best price available, trading price control for speed. A limit order only fills at a price you set or better, trading speed for price control, and it may not fill at all if the market never reaches your price.

Question 3

What happens after I click buy?

Accepted Answer

Your brokerage checks that you have enough cash or buying power, routes the order toward an exchange or market maker, the order matches against a willing seller, and the trade settles. Then the shares show up in your account.