This is an initial request for additional funds after you make a purchase. The federal requirement for purchasing stock is 50% equity. A fed call is generated when a new purchase or short sale is made on margin and your account equity drops below the short maintenance requirement. Fed calls can only be the result of an opening transaction, and a fed call must be met by cash or by depositing marginable stocks.

In technical analysis, Fibonacci Arcs are used to illustrate potential levels of support (the lowest price data points on a price chart) and resistance (the highest price data points on a price chart). They are also used to establish price targets.

Arcs are plotted on a price chart so that the center of each arc falls on the last peak (highest point) or trough (lowest point) of a trend line to show potential levels of resistance or support. The arcs then intersect the original trend line at each of the Fibonacci levels: 38%, 50%, and 62%. Arcs are usually plotted along with Fibonacci Retracements, though they don't have to be.

Fibonacci numbers are a sequence of integers (1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ...), where the sum of each set of two consecutive numbers equals the next number in the sequence.

In addition, the result of dividing any of the numbers in the sequence by the preceding integer equals approximately 1.618 (such as 8 / 5). And, if any number is divided by the following integer the result is about 0.618 (such as 8 / 13).

There are three important Fibonacci ratios that play significant roles in technical analysis. The first is 0.618, the second is 0.5, and the third is the ratio of every alternate number, or 0.382. These ratios are usually used as percentages: 61.8%, which is usually rounded up to 62%; 50%; and 38.2%, which is usually rounded down to 38%. The Fibonacci numbers form the foundation for a variety of indicators in the study of technical analysis. These include Fibonacci Retracements, Fibonacci Arcs and Fibonacci Time Zones.

In technical analysis, a retracement occurs when a security's price is trending upward or downward and then retraces, or moves in the opposite direction, before continuing along the same trend line.

For example, if a stock's price moves from $5 to $10 and experiences a 50% retracement, its price would fall to $7.50 before continuing to rise in value. When drawn on a price chart, the Fibonacci levels (38%, 50% and 62%) tend to act as levels of support (the lowest price data points on a price chart) and resistance (the highest price data points on a price chart). Significant price events are also expected to occur at these levels.

Non-profit organization formed under the joint sponsorship of the Investment Banker's Conference and the SEC to comply with the Maloney Act.

The FINRA's basic purposes are to 1) standardize practices in the field, 2) establish high moral and ethical standards in securities trading, 3) provide a representative body to consult with the government and investors on matters of common interest, 4) establish and enforce fair and equitable rules of securities trading and 5) establish a disciplinary body capable of enforcing the above provisions.

In investing terms, float is the number of outstanding shares that a company has available for investors. If a company has 15 million outstanding shares and only 10 million are in the market for trading, their float would be 10 million shares. Small floats often lead to more volatility because a single large trade could impact the availability of the stock, and large floats are generally more stable.

Form 1099 is a tax form for brokerage accounts (Individual, Joint, Trusts). A 1099 will be generated if there is an IRS reportable transaction in the account. Examples of 1099 reportable transactions:

• Dividends
• Interest
• OID
• Sell transactions
• Bond Redemptions
• Tenders, Mergers
• Principal Paid on Unit Trusts or Corporate Bonds
• Royalty Trust Income

A 1099 will not be generated if there are only non-reportable transactions in the account. Examples of 1099 non-reportable transactions:

• Buy transactions
• Option transactions (buys or sells)
• Non-taxable dividends
• Non-taxable interest (example: municipal bonds)
• Margin interest charged
• Master Limited Partnership (MLP) distributions

The load, or sales charge, that you pay when you purchase shares of a mutual fund or annuity is called a front-end load.

Some mutual funds identify shares purchased with a front-end load as Class A shares. The drawback of a front-end load is that a portion of your investment pays the sales charge rather than being invested. However, the annual asset-based fees on Class A shares tend to be lower than on shares with back-end or level loads. In addition, if you pay a front-end load, you may qualify for breakpoints, or reduced sales charges, if the assets in your account reach a certain milestone, such as $25,000.