A share (also referred to as equity shares) of stock represents a share of ownership in a corporation. (http://en.wikipedia.org/wiki/Stock)
A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies.
What is buying stocks?
There are various methods of buying and financing stocks. The most common means is through a stock broker or through a finance securities. Whether they are a full service or discount broker, they arrange the transfer of stock from a seller to a buyer. Most trades are actually done through brokers listed with a stock exchange, such as the New York Stock Exchange, etc.
What is selling stocks?
Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order (short selling); although a number of reasons may induce an investor to sell at a loss, e.g., to avoid further loss.
Why the price change / fluctuate all the times?
The price of a stock fluctuates fundamentally due to the theory of supply and demand. Like all commodities in the market, the price of a stock is directly proportional to the demand. However, there are many factors on the basis of which the demand for a particular stock may increase or decrease. These factors are studied using methods of fundamental analysis and technical analysis to predict the changes in the stock price.
Stock price is also changed based on the forecast for the company and whether their profits are expected to increase or decrease.
A share (also referred to as equity shares) of stock represents a share of ownership in a corporation. (http://en.wikipedia.org/wiki/Stock)
A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies.
What is buying stocks?
There are various methods of buying and financing stocks. The most common means is through a stock broker or through a finance securities. Whether they are a full service or discount broker, they arrange the transfer of stock from a seller to a buyer. Most trades are actually done through brokers listed with a stock exchange, such as the New York Stock Exchange, Nikkei, HangSeng, ISX, etc.
What is selling stocks?
Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order (short selling); although a number of reasons may induce an investor to sell at a loss, e.g., to avoid further loss.
Why the price change / fluctuate all the times?
The price of a stock fluctuates fundamentally due to the theory of supply and demand. Like all commodities in the market, the price of a stock is directly proportional to the demand. However, there are many factors on the basis of which the demand for a particular stock may increase or decrease. These factors are studied using methods of fundamental analysis and technical analysis to predict the changes in the stock price.
Stock price is also changed based on the forecast for the company and whether their profits are expected to increase or decrease.
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