Stock Market Trading means the transfer for money of a stock or security from a seller to a buyer. This require price agreement between the two parties. Equities (Stocks or shares) confer an ownership interest in a particular company.
Participants in the stock market range from small based businesses, individuals to larger scale investors, who can be based anywhere in the world, and may include insurance companies, banks, pension funds or hedge funds. To buy or sell orders may be executed on their behalf by a stock exchange trader. This is to facilitate the exchange of securities between the buyers and the sellers, reducing the risk of investing.
Stock market trading is sometimes done on physical locations where transactions are carried out on a trading floor. The method of stock exchange and commodities exchange involves traders entering oral bids and offers simultaneously. A good example of such an exchange is the world’s largest New Yolk Stock Exchange. The other type of Stock market trading is virtual kind, composed of a network of computers systems where trades are made electronically. An example good example is the NASDAQ.