how does e trade work?

basically, you have it right, but that is a 20+% return that is not that easy to come by. What about the scenario that you buy at 20 and it goes to 15, that happens also. You need to open up a brokerage account, and deposit $2,000 in that account. Then you buy stock and pay comissions, and hopefully make the 20% returns over and over again. tba

Yes it's as simple as that in theory

No brokerage firm in the this country (especially E-Trade) will let you open an account for $20.

E-Trade works like another registered broker/dealer in the United States, all brokerage firms are subject to the same rules and regulations and they all have the same basic policies and operating procedures.

Before you buy any stock or make any type of investment you should learn what's it all about, because based on your question you are absolutely clueless.

Here some website for you, take a look at them, most provide investment/trading ideas, but more importantly all of them will give you some education which you desperately need.

http://moneycentral.msn.com/home.asp

http://finance.yahoo.com/

http://www.investors.com/?tn=top

http://www.rookiedaytrader.com/default.asp

http://investorshub.advfn.com/default.aspx

http://www.thestreet.com/

http://www.brokerage101.com/

http://www.1source4stocks.com/

http://www.decisionpoint.com/TAcourse/TACourseMenu...

http://stockcharts.com/

http://www.grahaminvestor.com/

http://www.thestreet.com/

http://www.morningstar.com/

Take a year or more to learn investing/trading. If it was that "easy" to make money... everyone would be rich.

Start with;

Investing For Dummy's

Read & understand a few more books. Open a brokerage account with a company geared to help the new investor;

Charles Schwab or

Fidelity Brokerage

If you want to get into active trading read;

Trading In The Zone, Mark Douglas

Mastering The Trade, John Carter

All registered dealer/purchasers are required by means of legislation to have coverage safety by way of the Securities Investors Protection Corporation (SIPC) which insures every buyers account securities as much as $500,000 in marketplace importance and coins balances held as much as $one hundred,000 Most legitimate organizations even have additonal coverage by way of gigantic coverage contains for his or her purchasers safety/ In truth whilst a dealer/trader fails, the trade wherein this can be a member, or the company's clearing agent will attempt to uncover a customer for the company. The customer won't purchase the bodily amenities or any side there of, however will take the buyers so they may be able to keep un-interrupted. Most company that not too long ago dossier for bankrupcy, the balances and positions in their buyers weren't in any jepordy If the company isn't taken over by means of anothe dealer/trader, a receivor is appointed by means of SIPC and they're going to instantly reconcile safeguard positions and determine each buyers' securities. Been there performed that as a regulator