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subject: Online Stock Trading Can Be An Option For You [print this page]


Online stock trading is the act of buying and selling stock and securities for others, be it individual clients or large corporations. These days lots of people will hire a stock broker and give him a sum of money to invest in the market. The stock broker reads the market and tries to figure out which direction it is going, and when would be the best time to buy which stocks. They (brokers) buy and sell based on those predictions in an attempt to make their clients as much money as possible, on top of their original investment. These stocks represent a partial 'ownership' of a company, which pays dividends to its stockholders as a way of rewarding them for being investors and/or founders.

During the 1820s the main focus in this field moved to New York City, and ever since then, Wall Street has been the name that everyone knows for stocks and brokerages, and where the best brokers are.

Not everyone can buy and sell stocks. You must go through a broker or brokerage firm, who in turn will do your business for you. These brokers are experts and use that expertise to talk to their clients, learning information such as their current financial situation and their goals in investing. They use this to advise their clients on when to invest and where, and they in turn take their clients' wishes and attempt to earn them some extra money, maybe even a large sum if they predict the market correctly.

Stock broking is a very high-paced profession, with most brokers spending hours a day on the phone or share trading online, which is becoming more and more popular way to trade. The broker acts as a liaison between potential stock buyers and sellers. There are two main ways that brokers act out their trading. The first is actually on a trading floor, using what is called an 'open outcry'. This is an auction-type exchange where verbal bids and offers are done simultaneously. The second style is a virtual bid, where brokers use networking to make bids and buys electronically.

There are two main stock exchanges in the United States, which provide online stock trading. The New York Stock Exchange (NYSE) and the NASDAQ (originally called the National Association of Securities Dealers Automated Quotations). The main difference in the two is that the NYSE is a physical exchange, the trading floor style of trade, while the NASDAQ is the virtual stock exchange, using technology to electronically match buyers and sellers, and in turn trade stocks.

Share trading online is an extremely useful resource for all companies to use for raising money, which can allow them to go public for the first time, or make additional capital in order to expand. This is a much faster way to sell securities, and is easier to liquidate than other investments, such as real estate.

by: Rob Wilmas




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