American Depository Receipts (ADRs) allow investors to buy shares of foreign companies. Buying an ADR is like buying a share of the foreign company, except the shares of the ADR are denominated and pay dividends in U.S. dollars instead of the currency of the foreign company’s country.


Bid-Ask Spread

The bid-ask spread represents the supply and demand prices for a stock. The bid price is the price investors are willing to pay for the asset, and the ask price is the price investors are willing to accept for selling the asset.


Buying Power

Buying power is the amount of money you can use to invest.


Corporate Action

A corporate action is any activity a company takes that leads to a notable change in the company's stock. 



A stock is delisted when it’s been removed from the stock exchange. These stocks do not trade on Passfolio.



An Exchange-Traded Fund is an easy way to invest in a pool of different companies all at once. When investing in an ETF, the value of your investment will depend on how the group of companies is doing.


Extended-Hours Trading

You are allowed to queue orders while the market is closed and wait for them to be executed when the market reopens.



FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization under the supervision of the Securities and Exchange Commission (SEC). FINRA plays a critical role in ensuring the integrity of America’s financial system.


Fractional Shares

A fractional share is a piece of one whole share of stock. With us you are allowed to buy fractional shares and that is why you can deposit as little as US$ 1 to start investing. 


High-Volatility Stocks

Stocks that have their prices fluctuate considerably during a given period are called high-volatility stocks and are considered riskier investments.



An initial public offering is when a company raises capital by offering its shares to the public for the very first time.


Low-Priced Stock

Stocks that are valued at less than US$1 per share are commonly referred to “penny stock”.


Low-Volume Stock

If there aren’t many investors trading a specific stock, this stock is referred to as low-volume stock. Since they are thinly traded, its prices can change dramatically because each individual trader has a big influence on the price of the stock, which makes these stocks to be considered more risky.


Market Hours

The stock market opens for trading from 6:30A.M. to 1P.M. Pacific Time.


Market Order

A market order is simply an order that will be immediately executed at the current market price. However, placing orders for stocks that are thinly traded might lead to partially filled orders. In this case, your order will remain open until the remaining shares are filled or if you cancel it.



In a merger between companies, typically the acquiring company chooses to liquidate the shares of the acquired one for cash or give out shares of their own company to shareholders of the acquired company. 



Nasdaq is a stock exchange, just like NYSE. The main difference between them is that Nasdaq has no physical location. All the trades are handled electronically.



The New York Stock Exchange, known as NYSE, is the largest stock exchange in the world.


Partial Execution

When only part of your order gets filled, it is called partial execution. 



The Securities and Exchange Commission (SEC) is an independent agency of the U.S. federal government responsible for protecting investors and maintaining fair and orderly functioning of the securities markets.



The time that stocks or cash take to move from one place to another is known as Settlement. The regular settlement time for stocks or cash is the trade date (T) plus two trading days, commonly referred to as T+2.


Stock Transfer

Stock transfer allows you to transfer shares of stock, or your entire account, from other brokerages into your Passfolio account and vice versa.


Two-Factor Authentication

Two-Factor Authentication is a tool that adds another layer of security to your account. It is automatically activated when you open an account with us and it’s not possible to deactivate it.



If a stock is untradeable, you won’t be able to buy or sell shares of it through your app. If you want to sell, please contact us at


Wash Sale

Wash sale occurs when you sell a stock for a loss, and then buy the same or a similar stock within 30 calendar days. Taxpayers are prohibited to claim losses from wash sales for tax purposes.

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