Stock Marketing Trading Information Together With Examples
The stock exchange has puzzled many people over the years using its behavior. Very few so called analysts have been able to make predictions that are always right and that is because price movement of stocks are dependent on a variety of factors like political developments, economic news, company performance of the stock, influence of foreign institutional buying and so on. In short, it is only another market that behaves according to the demand and supply existing at a particular point in time. It can be compared to a big super mall where individuals are either buying or selling stocks. For every buyer, there is a seller and the other way around.
This specific transaction of buying and selling of stocks is facilitated by a stock exchange. The New York Stock Exchange is one such example. When compared with earlier times, whenever you had to be physically present at the exchange to trade stocks, modern trading is performed through online trading portals that are owned by brokers and many people have been able to do so from the comfort of the homes.
Let us look at one example of how a stock trade happens.
You first need to open a trading account with a broker in addition to a deposit total with which you'll trade in a specific quantity of shares with respect to the price of the stock you wish to trade in. You then place an order to buy a particular stock at a particular price and also the quantity might be say 100. The trading platform will communicate to any or all networks that a person wants to buy 100 shares of a specific company which immediately results in an engaged seller of this stock to make available 100 shares in the price you desired and the transaction is done online. Hundred shares get transferred in the seller's account to your account. Several such trades keep happening with the working hours from the stock exchange on a daily basis and the relevant brokerage fee; taxes towards the government and so on are all adjusted online within the trade that's executed.
Now the decision of what stock to buy is determined by valuation from the stock and that is determined by the earnings the company is generating, the future potential of the company or the industry and the time the customer is willing to remain invested in that stock. Those are aspects that merit debate separately.
This specific transaction of buying and selling of stocks is facilitated by a stock exchange. The New York Stock Exchange is one such example. When compared with earlier times, whenever you had to be physically present at the exchange to trade stocks, modern trading is performed through online trading portals that are owned by brokers and many people have been able to do so from the comfort of the homes.
Let us look at one example of how a stock trade happens.
You first need to open a trading account with a broker in addition to a deposit total with which you'll trade in a specific quantity of shares with respect to the price of the stock you wish to trade in. You then place an order to buy a particular stock at a particular price and also the quantity might be say 100. The trading platform will communicate to any or all networks that a person wants to buy 100 shares of a specific company which immediately results in an engaged seller of this stock to make available 100 shares in the price you desired and the transaction is done online. Hundred shares get transferred in the seller's account to your account. Several such trades keep happening with the working hours from the stock exchange on a daily basis and the relevant brokerage fee; taxes towards the government and so on are all adjusted online within the trade that's executed.
Now the decision of what stock to buy is determined by valuation from the stock and that is determined by the earnings the company is generating, the future potential of the company or the industry and the time the customer is willing to remain invested in that stock. Those are aspects that merit debate separately.
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