Stock Trading Online – The Basics

Introduction to Stock Trading

It is important to understand precisely what shares are before you invest in them. Once you are familiar with the stock market and the basics of stock trading, you will be better poised to invest in online stock trading. Stocks are traded on stock exchanges – locations where buyers & sellers come together and decide upon a price to value a security. You have likely seen the frenetic activity of traders wildly gesticulating as they try and secure buy and sell decisions on the trading floor. There is another type of exchange – the virtual exchange, where electronic trades are placed. In both instances, the rationale behind the stock market is the facilitation of trade between buyers & sellers. Without it, the price discovery process for determining value would be far more difficult.