Basics of stock trading

Usually the image comes in when you hear about stock trading what we see in the movies, where men in suits, usually screaming and fighting with each other in some large building, in New York, money to argue. To some extent, it is something real in this picture while trading on the stock market actually is a more complex concepts that many people make money and help companies in.



The concept of trade consists mainly of buying and selling of shares to persons or companies through brokers. With the acquisition of shares or percentage of share ownership in the company you and can make money person, but she invested a company can act fairly in the market.



There are two main ways that the stock market where to buy and sell more traditional and playing electronic technology is working - in the stock exchange, where the Exchange.



Trading in the stock exchange



Trade is in a traditional exchange floor in the New York Stock Exchange (NYSE) is used to what most of us have movies and TV. NYSE consists mainly of many brokers, the offers that have negotiated trade shares.



As chaos, than you might think that stock exchange, words is actually a common pattern among commonly called. The first, which discusses a number of layers of a broker will buy. The Division is then mechanism broker Paul provide the exchange officer. Then the word informed other traders will find ready clerk floor traders who sell the same number of shares of companies that offers to buy. After both parties agree on a price and close the case, the message is so you back up the line sent and then informed the agent of the interested buyer on the final price.



Negotiations may take several minutes or even longer, depending on performance and market. For more complex transactions and orders inventory can be a complicated process, but the principles remain unchanged.



E-Commerce



Growing tendency nowadays however trade shares electronically by advanced computer systems. In contrast to the NYSE broker works generally have human resources with his partner the National Association of securities dealers automated quotations (NASDAQ), trade shares exclusively by electronic means.



These electronic markets of human brokers and instead of demanding networks match buyers and sellers. And with this method, the transaction is usually faster and more efficient.



Thanks to e-commerce get investors many advantages, such as capacity, faster confirmation, and support for online investing easily over the Internet is accessible. But the most brokers or trade, as investors have no direct access to electronic markets.



A process that takes place two methods of investors usually hides. If an investor, you will not usually a phone call from your broker and regular reports on stock, that investment for you, but made available to you will see what happens behind the scenes.



By investing that people make, many companies have been floating and works. And investors receive a fair share of revenue in return. Trade is a complicated process, but at the end of the day, many people use most everything. As a result, the entire concept is simple.