What are the stocks and how do they trade?

What is a stock?

You may have heard of stock and IPO initial public offerings – quite often. You may have heard that stock trading is not as good as gambling. The fact is that stock trading is not very dangerous at all. But like in all other businesses, you need to learn and understand the mechanisms of stock trading in order to profit from it.

In order to explain the layman's language in a simple way, the stock is the share of the ownership of the company. You may dream of owning a huge company and becoming rich. While you may not be able to own the entire company, you can buy a certain percentage of the stock and become its proud owner. The process can be mathematically explained. Suppose you start a company and issue 5 shares. Obviously, each share will be equal to 20% or one-fifth of the company's ownership. However, if you buy another stock in addition to the stock you already own, you have two shares and your ownership or stake in the company will rise to 40%. The words stock, stock and stock are synonyms. You can continue to pay dividends as long as you continue to pay dividends after you have purchased your company's shares and leave at the moment you face a loss.

Usually, stocks are made of paper with an attractive design and important look. It is called a stock certificate. Before you had to apply for a stock, you would get a stock certificate. The process is laborious and time-consuming. As the technology progresses, you do not get a paper certificate. Your stock is held as "street name". This means that the stock holds the broker's name, not the customer's name. Doing so makes it easier to transfer ownership when buying or selling stocks. In short, this means that the brokerage company maintains the records electronically. Otherwise, like

The basic assumption of a stock is that the shareholder is entitled to the profits and assets of the company in which he owns it

The basic assumption of a stock is that the shareholder is entitled to the profits and assets of the company in which he owns the shares . This is what gives the value of your stock. Without this value, your stock is a worthless paper, and your electronic stock is still a worthless computer input

Large companies usually issue millions of shares if you happen to own a few shares and you are ]

Stocks are traded on the New York Stock Exchange, New York Stock Exchange, New York Stock Exchange, New York Stock Exchange, New York Stock Exchange, New York Stock Exchange,

Stock Exchange, NASDAQ – National Association of Securities Dealers Automated Quotations, American Stock Exchange or American Stock Exchange. There are two main types of stock exchanges, physical and virtual

Physical Stock Exchange As we have seen in movies or on CNBC television shows, the crazy shareholders wearing blue jackets frantically waved papers

The second type, virtual securities The exchange, which includes a virtually internet-linked network, where the whole transaction takes place online, is the only best way to trade if you buy and sell you through local advertising You can imagine how slow and exhausted the whole process will be.The exchange is a centralized intermediary between sellers and buyers.Electronic transactions are obviously more efficient.This explains why even face-to-face physical exchange, usually also Use of electronic trading services

The price of stocks is determined by their supply and demand, just like any other commodity, such as wheat or gram. When more people buy stocks, their needs and prices rise. More people want to sell a stock, its demand and prices are lower