What is Stock Trading ; For Dummies

I will try to explain stock trading in simple words as possible.

Let me introduce you to stock and it’s meaning before jumping to stock trading.

A stocks is a shares which will give the share’s owner a fixed money, for which is the most important in the company than the regular shares owners.

So a stocks is a share owned by important people in the company who has more rights and ownership in the company.

When a new company or let say a startup is formed, not all of them  has huge money to invest and grow their business. So in order to get money, they sell their company owner’s percentage to the people in the form of shares, such people are called investors, they give money to the company inn return for some percentage ownership of it. so the people who buy more share of company has more value in the business, he has a right to vote and also join meeting regarding companies future.

Such trading is happening on various platform, be it online or offline,

In other terms, trading; which includes selling or buying of shares is called stock trading.

There are many stocks trading in the world, with 3 most important New york, London and Tokyo,this 3 stocks exchanges completed the 24 hours a day with working one after another to make it available 24 hours a day.

Stocks exchanges show the price value of each stocks in real time, and for the fact, top stocks exchange show shares of only Fortune 500 companies around the world.

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1 Comment

  1. Thanks for the article. I have a question I was hoping you might be able to help with. Do you know if insder trading is the same thing as a trading scheme? I want to get into trading but I’m worried I might get into trouble without realizing I’m doing anything wrong. Thanks in advance for your answer.

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