Trading in the stock market is a mouse click away
Once reserved for the few affluent people with money and know-how, trading in the stock market has been "democratized" by online stock trading or online share trading. The stock market used to be a rather mysterious entity, open only to a select few and out of the reach of ordinary individuals. Almost everyone was aware that fortunes were made or broken in the stock market but not many knew exactly how. With computer technology and the emergence of an online world, all that has changed. The main instrument of change is known as online trading.
Stocks are shares of a business. People who own these shares can buy or sell them and the stock market is where they do so. Depending primarily upon the performance of a company, the value of its shares may increase or decrease. If you buy a share at a certain price and its value in the stock market goes up, you can sell it and make a profit. If it goes down and you sell it, you lose money.
Traditionally, to buy and sell shares, you needed to engage the services of a stock broker – a person who had the license to trade shares in a stock exchange where the stock market activity is conducted. The broker makes a commission on the value of the transaction. Going through a broker was supposed to entitle the buyer or seller of shares to the broker's advice and expertise about whether the value of a certain share would increase or decrease.
Today, a new type of broker has emerged – an online one. To buy or sell shares online, you need to open an account with an online brokerage. You will be asked to provide information about yourself and maintain a specified fund balance with which to pay for the shares that you buy. The online brokerage provides you with online information about the current value of shares. You can choose which shares you want to buy, at what price, and instruct the online brokerage to buy them for you. If you own shares and want to sell them, you can also instruct the online brokerage to do so. Shares traded through an online broker are the same ones that are listed in the stock exchanges.
The online brokerage has opened trading in the stock market to many more people. The system has reduced the average commissions that one had to pay to traditional brokerage houses, making stock trading more affordable. Online trading has also provided current information about share values and made it possible for individuals to make the decision about which stocks to buy or sell.
Online brokerages provide other services to individuals who wish to trade online. In addition to the current value of shares, they also analyze markets and inform their customers about trends in order to guide investors in their choices. If you have thought about online trading but been put off by the apparent complexity of the process, then online share trading or online stock trading is worth your attention.
Once reserved for the few affluent people with money and know-how, trading in the stock market has been "democratized" by online stock trading or online share trading. The stock market used to be a rather mysterious entity, open only to a select few and out of the reach of ordinary individuals. Almost everyone was aware that fortunes were made or broken in the stock market but not many knew exactly how. With computer technology and the emergence of an online world, all that has changed. The main instrument of change is known as online trading.
Stocks are shares of a business. People who own these shares can buy or sell them and the stock market is where they do so. Depending primarily upon the performance of a company, the value of its shares may increase or decrease. If you buy a share at a certain price and its value in the stock market goes up, you can sell it and make a profit. If it goes down and you sell it, you lose money.
Traditionally, to buy and sell shares, you needed to engage the services of a stock broker – a person who had the license to trade shares in a stock exchange where the stock market activity is conducted. The broker makes a commission on the value of the transaction. Going through a broker was supposed to entitle the buyer or seller of shares to the broker's advice and expertise about whether the value of a certain share would increase or decrease.
Today, a new type of broker has emerged – an online one. To buy or sell shares online, you need to open an account with an online brokerage. You will be asked to provide information about yourself and maintain a specified fund balance with which to pay for the shares that you buy. The online brokerage provides you with online information about the current value of shares. You can choose which shares you want to buy, at what price, and instruct the online brokerage to buy them for you. If you own shares and want to sell them, you can also instruct the online brokerage to do so. Shares traded through an online broker are the same ones that are listed in the stock exchanges.
The online brokerage has opened trading in the stock market to many more people. The system has reduced the average commissions that one had to pay to traditional brokerage houses, making stock trading more affordable. Online trading has also provided current information about share values and made it possible for individuals to make the decision about which stocks to buy or sell.
Online brokerages provide other services to individuals who wish to trade online. In addition to the current value of shares, they also analyze markets and inform their customers about trends in order to guide investors in their choices. If you have thought about online trading but been put off by the apparent complexity of the process, then online share trading or online stock trading is worth your attention.
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