To learn about stock market you must first understand what stock is? It is a small share representing the partial ownership of a company which is issued by the company to raise its capital. These stocks are purchased by investors where the gain profits whenever there is a rise in the value of that stock. Each stock is often limited to a particular number of shares and the growth and earnings along with the financial strength of the company is responsible to increase the stock value which is targeted to make profits by the speculators or investors. The movement of these stocks in the market where the speculators buy and sell their stocks is termed as stock market.
A broker is either an individual, participating company or Intermediate Company which performs the transactions of buying and selling stocks for the investors. Online brokers today are the platforms which allow individuals to trade stocks from the comforts of their homes unlike the earlier traditional format where they had to call the brokers to specify their needs like number of stocks, what percentage to sell, etc and the broker receives a commission for this service. Online stock trading platforms are the brokers in online stock trading where you can buy and sell hot stocks whenever you want to. Dividends are the means of earning from your stocks Stock trading is something which attracts investors due to the dividends involved in it which is the extra income the speculators earn from their investments. Stocks are the securities or the share of a company and whenever the company makes profits a part of that profit is given to the investors as dividends. Based on the amount of dividend actively received by your stocks can have a major influence of selling your stocks where if the dividend is reduced or totally stopped you can sell that stocks as it is indicator that the company will face tremendous loss bringing down the value of the stock. Get more info here.
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