OK Thanks for the tip with the clippers. Now that I have the name for the tree "mallsai" and I have done some research I am still somewhat confused. Some websites say that this is a name given to trees that are mass produced. Some sites say that these are ficus trees and others say that these are Chinese Elm/Ulmus.
Mallsai are trees that are mass produced and often all have the exact same S-shaped trunk. They lack taper, proper branch positioning, proper branch development and ramification and do not have the quality real bonsai have. Mall-sai is a combination of 'Mall' and 'Sai' - plants you would buy in a Mall. This can be any type of tree, but the ficus you are referring too often concerns a Ficus Microcarpa 'Ginseng', a grafted tree with disproportionate roots, that cannot be considered a bonsai at all.
2. It also says in some sites that these trees are usually potted with the chinese red clay and should be repotted. If not the tree will being to die. Is this true? should I take the tree out and repot the tree? The tree was purchased on Sunday at a flower fair in NY. Please help I want to make sure this tree lives a long and happy life.
That is probably outdated. If the tree soil looks good, drains properly and doesn't stay too wet, and if the tree is doing well and is growing, there is no immediate need to repot it. I cannot clearly see in what type of soil the tree is in; looks like there are clay pellets or pebbles on top of the soil - or is the complete pot filled with that material ?
Your tree - I think - is a Zelkova Serrata.