Stock trading is done by a wide range of investors and this line of investors consists of individual stock investors, stock trading companies, etc. All these individuals and companies used to recruit professionals who carry out the trading on behalf of the recruiters.
The term stock means shares. Different companies sell a part of their shares in the stock market and the buyers purchase these shares and becomes a partner in the company's profit. This profit making is the main thing behind buying and selling of the stocks. There is another form of investment and profit making which is known as bond. The stocks and bond market are different but these are jointly known as the securities market.
Stock exchanges are the places where the
stock trading takes place. These places are designed to bring the stock sellers and the stock buyers on the same platform and to boost the business of stock trading. There are different types of stock exchanges like physical type, virtual type, etc. The stock trading follows different methods which depends on the market type.
In the physical location, the stock is done through a method which is known as 'open outcry'. The trading in these type of exchanges is done on the trading floor. In these type of exchanges the traders put forward the bids and offers verbally. This method is the traditional method of stock trading but it is becoming outdated in todays market.
The virtual stock exchanges are much more sophisticated than the traditional one. These exchanges use the modern technology like computers and other gadgets to carry out the trading. Instead of crying loudly and putting forward the rates and offers, the traders in virtual exchange uses the computer terminals and the trading is done electronically.
The
stock trading is like a auction market. In the auction market there are several sellers and at the same time, there are several buyers. The buyer asks a price for the commodity and the seller quotes a price to buy the commodity. When the seller's price and the buyer's price matches each other, the deal is confirmed. In the stock exchanges, this kind of selling and buying exists and this is done on a early-bird basis.
| Stock Trading (Meaning and Process)
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