A large number of people from around the world have become millionaires owing to careful and tactical investments in the forex trading market. For the uninitiated, yes currency can be bought from different countries and can be sold at the ongoing market rates to earn profits. This market where the exchange of currency is done is known as the foreign exchange market. The forex market is ever changing and the changes are made every second. It thus becomes imperative for an individual to have a high speed Internet connection in order to keep himself updated with all latest change in the market.
The profits in the foreign currency trade are made in accordance with the swells and dips in the forex trading markets. The traders who have been around in the market develop this uncanny ability of predicting the market to a very large extent and as a result of which they generate a good income. The trading is done around the clock owing to various trading markets that are situated around the globe.
Due to varying time zones, different markets are operational at any given point in the day as a result of which various numbers of sellers and buyers are always available for the trade. The markets close only for the weekends. The fact that forex currency trade is done around the clock gives an added advantage to the traders in the form of extended opportunities and higher chances of tapping the changing market trends.
The profits that one achieves from the forex currency trade depend entirely on the purpose of the individual. Day traders often look for short term gains and do not invest for larger periods. On the other hand, various investors invest their money for forex trades that pan out for a long time interval thus giving themselves slightly higher dividends. The forex currency trade should however be done after extensive research and practice owing to the fact that lack of any of these 2 things can lead to huge losses.
Anyone looking to make a living online or at home without being an affiliate or licking envelopes needs to look at Forex Funnel System. The software has revolutionized the trading world by giving the common person the ability to enter the multi trillion dollar world of currency exchange and actually make good money with Forex.
Obediah Marsh
http://forexfunneltradingreview.wordpress.com
Article Source: http://EzineArticles.com/?expert=Obediah_Marsh
Sunday, August 10, 2008
Thursday, July 31, 2008
FOREX - Trading Foreign Currency
The trade of FOREX is all about trading the foreign currency, stocks, and the similar type of products. The currency of a country is weighed against the currency of another country to determine the value. The value of this foreign currency is taken into account while trading of stocks on the markets of FOREX. The majority of the countries have the control of the value of that value of country, implying the currency, or the money. Those which are often implied on the markets of FOREX include banks, large companies, governments, and financial institutions.
What returns the market of FOREX different from the stock market?
A trade of the market of forex is one which implies at least two countries, and it can take place in the whole world. The two countries are one, with the investor, and two, the country the money is invested inside. The majority of all the transactions taking place on the market of FOREX will take place by a broker, such as a bank.
What composes really the markets of FOREX?
The market of foreign currencies is composed of a series of transactions and counties. Those implied on the market of FOREX trade in great volumes, great numbers of money. Those which are implied on the market of FOREX are generally implied in operations the cash, or the trade of the credit very available which you can be sold and buy quickly. The market is large, very large. You could regard as being the market of FOREX much larger than the stockmarket in any country in general. Those implied on the market of FOREX trade the newspaper during twenty-four hours per day and sometimes the trade is accomplished the weekend, but not all weekends.
You could be astonished people who are implied in the trade of FOREX. In years 2004, almost two trillion of dollars were a volume of daily exchange of average. It is a big number for the number of daily transactions to take place. Think how much trillion dollars really costs and then times which by two and it is the money which changes hands day labourers!
The market of FOREX is not something new, but was employed during more than thirty years. With the introduction of the computers, and then the Internet, the trade on the market of continuous FOREX to develop like more and more people and the companies realize of the same of the availability of this commercial market. The FOREX explains only approximately ten percent of the total trading from one country to another, but while popularity on this market continues to develop thus this number could.
Justin Boyce is a widely known online marketer one of his passions is Forex trading. Financial investments is an easy way to make money grow and the returns are quick if you use a proven forex trading system. Visit Justin Boyce's site to learn more and start growing your money now.
Article Source: http://EzineArticles.com/?expert=Justin_Boyce
What returns the market of FOREX different from the stock market?
A trade of the market of forex is one which implies at least two countries, and it can take place in the whole world. The two countries are one, with the investor, and two, the country the money is invested inside. The majority of all the transactions taking place on the market of FOREX will take place by a broker, such as a bank.
What composes really the markets of FOREX?
The market of foreign currencies is composed of a series of transactions and counties. Those implied on the market of FOREX trade in great volumes, great numbers of money. Those which are implied on the market of FOREX are generally implied in operations the cash, or the trade of the credit very available which you can be sold and buy quickly. The market is large, very large. You could regard as being the market of FOREX much larger than the stockmarket in any country in general. Those implied on the market of FOREX trade the newspaper during twenty-four hours per day and sometimes the trade is accomplished the weekend, but not all weekends.
You could be astonished people who are implied in the trade of FOREX. In years 2004, almost two trillion of dollars were a volume of daily exchange of average. It is a big number for the number of daily transactions to take place. Think how much trillion dollars really costs and then times which by two and it is the money which changes hands day labourers!
The market of FOREX is not something new, but was employed during more than thirty years. With the introduction of the computers, and then the Internet, the trade on the market of continuous FOREX to develop like more and more people and the companies realize of the same of the availability of this commercial market. The FOREX explains only approximately ten percent of the total trading from one country to another, but while popularity on this market continues to develop thus this number could.
Justin Boyce is a widely known online marketer one of his passions is Forex trading. Financial investments is an easy way to make money grow and the returns are quick if you use a proven forex trading system. Visit Justin Boyce's site to learn more and start growing your money now.
Article Source: http://EzineArticles.com/?expert=Justin_Boyce
How to Start Forex Position Trading
Forex position trading strategy is a simple technique to increase your position size without increasing your risk. This trading strategy is particularly effective with mini lots and with averaging into a position also it works equally efficiently for standard lots.
For example you may buy one mini-lot of EUR/USD at 1.3100 and set the stop loss at 1.2980. It pose a risk of $20. When the price rises, you may buy a second mini-lot at say, 1.3120 and set the stop at 1.3100 with raising the stop of the first lot to 1.3100. Now you have two lots with overall risk still at $20.
If you find the price to be still rising, you buy a third lot at 1.3140 and set the stop at 1.3120 along with rising the stop of the first two lots also to 1.3120. This would ensure that even in the worst case the whole trade is at break even. Now, with further price rise, you buy a fourth lot at say 1.3160 setting the stop at 1.3140.
Accordingly, you raise the stop on the first three lots at 1.3140, which will protect your profit. Finally, you buy the fifth lot, set the stops as before and ensure a profit of $100. Throughout the process your risks remain at a constant of $20. So in this forex position trading strategy, you limit your risk exposure and at the same time gain handsome profits.
You can use a similar forex position trading method to average your trades. Weekly 3-bar pattern is a strategy which is ideal for forex position trading and which is very effective on longer time frames like the daily or the weekly chart. This forex position trading strategy lets you stay with the trend for a longer period of time.
Ideally, any day trading should be done with minimum lot size position. With forex position trading strategy, the initial profit is less but with trailing stop it can maximize the profit. A good position of day trading can be changed with forex position trading into a long-term profit option.
With forex position trading your exposure to the market is less and therefore no need to monitor the market continuously. The hedging order protects the position and limits your risk in the trading. With forex position trading, you can earn profit with minimal loss that boosts your trading confidence.
You can find many trusted money management software to calculate tradable profit/loss patterns along with optimizing trade sizes for supporting your forex position trading strategy. These software are designed to calculate trade position sizes according to various money management models with several successful positions sizing formula.
The forex position trading strategy may use formulas based on fixed percent risk, float percent units, fixed units, etc. The software are easy to use and help in calculating the most optimal position size for forex position trading strategy. You may also have many online position sizing techniques and position size calculators, which can supplement your forex trading strategy.
To learn more about currency trading techniques visit Forex Position Trading
Article Source: http://EzineArticles.com/?expert=Paul_Bryan
For example you may buy one mini-lot of EUR/USD at 1.3100 and set the stop loss at 1.2980. It pose a risk of $20. When the price rises, you may buy a second mini-lot at say, 1.3120 and set the stop at 1.3100 with raising the stop of the first lot to 1.3100. Now you have two lots with overall risk still at $20.
If you find the price to be still rising, you buy a third lot at 1.3140 and set the stop at 1.3120 along with rising the stop of the first two lots also to 1.3120. This would ensure that even in the worst case the whole trade is at break even. Now, with further price rise, you buy a fourth lot at say 1.3160 setting the stop at 1.3140.
Accordingly, you raise the stop on the first three lots at 1.3140, which will protect your profit. Finally, you buy the fifth lot, set the stops as before and ensure a profit of $100. Throughout the process your risks remain at a constant of $20. So in this forex position trading strategy, you limit your risk exposure and at the same time gain handsome profits.
You can use a similar forex position trading method to average your trades. Weekly 3-bar pattern is a strategy which is ideal for forex position trading and which is very effective on longer time frames like the daily or the weekly chart. This forex position trading strategy lets you stay with the trend for a longer period of time.
Ideally, any day trading should be done with minimum lot size position. With forex position trading strategy, the initial profit is less but with trailing stop it can maximize the profit. A good position of day trading can be changed with forex position trading into a long-term profit option.
With forex position trading your exposure to the market is less and therefore no need to monitor the market continuously. The hedging order protects the position and limits your risk in the trading. With forex position trading, you can earn profit with minimal loss that boosts your trading confidence.
You can find many trusted money management software to calculate tradable profit/loss patterns along with optimizing trade sizes for supporting your forex position trading strategy. These software are designed to calculate trade position sizes according to various money management models with several successful positions sizing formula.
The forex position trading strategy may use formulas based on fixed percent risk, float percent units, fixed units, etc. The software are easy to use and help in calculating the most optimal position size for forex position trading strategy. You may also have many online position sizing techniques and position size calculators, which can supplement your forex trading strategy.
To learn more about currency trading techniques visit Forex Position Trading
Article Source: http://EzineArticles.com/?expert=Paul_Bryan
Saturday, July 5, 2008
Best Stocks to Invest In
Finding the best stocks to invest is not easy but it is not impossible either. With a little patience and right technique anyone can make out which stock will give him good return in the future. For that you need to adopt a few techniques that we will discuss in this article.
Information is the key in stock market trading and thanks to the Internet, finding information is not so hard now. There are hundreds of websites that offer detailed stock market news, tips and industry info. But following all these websites is not only impossible but also confusing as you will find that most of these websites contradict themselves. So it is better to select a few websites and follow them closely and keep track which one gives the authentic information. Once you have found out one or two such sources for reliable information bank on them for determining your stock market strategies.
Have a plan for stock trade and do not jump over everything that comes on your way. Focus on a specific area or industry and keep your investments concentrated in that particular area. In that way you will be able to keep comprehensive information on the stocks and that particular area of the market. It will be easier for you to closely monitor the individual stocks and the companies that will definitely help you to make wise investments. Remember if you invest in what you know thoroughly then it will most likely give you good return.
While trading stocks always distribute your investment wise. Instead of investing in one particular stock select a few good stocks to invest. It is always better to put your money in different stocks as stock market is extremely volatile and even the biggest blue chip companies have down falls at the stock market. So, by investing in number of selected stocks at a point of time you will significantly lower the risk.
There are so many experts these days offering tips that will make you rich with just one or two investments. Surely, it can happen to someone, but there is no surefire technique to predict which stock will give you multiple returns. So it is always better to do your own research for selecting the stocks to invest. There are so many things that you need to consider before investing in a particular stock. Study the current price of the stock and compare it with the P/E ratio and that will give you a fair idea if the stock is over priced or not. Take a look at the sales margin and volume of the stock to see the future of the company and how the market is reacting for the stock. Taking all these factors into consideration make your investment strategy and always have a plan for investing instead of going by the buzz in the market.
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Information is the key in stock market trading and thanks to the Internet, finding information is not so hard now. There are hundreds of websites that offer detailed stock market news, tips and industry info. But following all these websites is not only impossible but also confusing as you will find that most of these websites contradict themselves. So it is better to select a few websites and follow them closely and keep track which one gives the authentic information. Once you have found out one or two such sources for reliable information bank on them for determining your stock market strategies.
Have a plan for stock trade and do not jump over everything that comes on your way. Focus on a specific area or industry and keep your investments concentrated in that particular area. In that way you will be able to keep comprehensive information on the stocks and that particular area of the market. It will be easier for you to closely monitor the individual stocks and the companies that will definitely help you to make wise investments. Remember if you invest in what you know thoroughly then it will most likely give you good return.
While trading stocks always distribute your investment wise. Instead of investing in one particular stock select a few good stocks to invest. It is always better to put your money in different stocks as stock market is extremely volatile and even the biggest blue chip companies have down falls at the stock market. So, by investing in number of selected stocks at a point of time you will significantly lower the risk.
There are so many experts these days offering tips that will make you rich with just one or two investments. Surely, it can happen to someone, but there is no surefire technique to predict which stock will give you multiple returns. So it is always better to do your own research for selecting the stocks to invest. There are so many things that you need to consider before investing in a particular stock. Study the current price of the stock and compare it with the P/E ratio and that will give you a fair idea if the stock is over priced or not. Take a look at the sales margin and volume of the stock to see the future of the company and how the market is reacting for the stock. Taking all these factors into consideration make your investment strategy and always have a plan for investing instead of going by the buzz in the market.
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Build a Strong Stock Trading Strategy
Do you want to invest in stocks? Do you want to make profits instantly? If yes, then your choice is absolutely right. However, if you have any previous experience about trading, then you can look for day trading - the most profitable stock option where trading is done on the same day. And, if you are a new investor, you can look for long-term trading option where you can earn substantial benefits.
If you have no idea about online stock trading, then the first step would be to get yourself familiar with this type of trading. As the name suggests, in this kind of trading, you trade online on the Internet and there is no need to meet the stock broker in person. Moreover, you don't even need to do any paper work. What actually you need is an online account. So, if you have access to the Internet, you can open an account right from your home or office.
If you ask an experienced trader why he invests in stocks - his answer would simply be to earn profits in a short time period. This is absolutely right - no other investment options offer such profits. The other advantage associated with this type of trading is that there is no limitation unlike other investment options such as lock-in period and fixed interest rates. In case, you want to withdraw money urgently - you cannot take out money in other investment option. However, you can take out your money anytime in the case of stock trading.
So, what kind of trading strategy you should follow in order to reap maximum profits from your investment? According to professional experts, there are certain points you need to follow in order to gain profits. These are mentioned below:
Educate yourself: Whether you want to invest in stocks or in any other places, you need to know about the plan. A comprehensive knowledge is a must for you - therefore, you need to educate yourself. In case of stock trading, you can access articles, blogs, reviews and other content on the Internet. In addition, you can also discuss with financial experts for the same.
How much you want to invest: For those who are experienced, they know how much they want to invest. On the other hand, those who are new investors, they need to analyze their financial strength and then invest accordingly. However, it is suggested that new investors should start with small funds and once they start earning profits, they can raise their funds in the future.
How to buy and sell stocks: Since, trading is done online, you can buy and sell stocks on the Internet. As far as buying and selling of stocks are concerned, a comprehensive market analysis is a must. Without comprehensive market analysis, you cannot buy and sell stocks on time. Therefore, use advanced analysis tools from the company's website and trade intelligently. In addition, stock quotes and charts are also important - read the chart daily and keeps you abreast of the market updates.
Follow these points and then trade accordingly. For future financial security, investment is a must for everyone. Save your hard earned money and build a strong financial backup. Your today's investment decision will definitely help you and your family in future. So, invest now.
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
If you have no idea about online stock trading, then the first step would be to get yourself familiar with this type of trading. As the name suggests, in this kind of trading, you trade online on the Internet and there is no need to meet the stock broker in person. Moreover, you don't even need to do any paper work. What actually you need is an online account. So, if you have access to the Internet, you can open an account right from your home or office.
If you ask an experienced trader why he invests in stocks - his answer would simply be to earn profits in a short time period. This is absolutely right - no other investment options offer such profits. The other advantage associated with this type of trading is that there is no limitation unlike other investment options such as lock-in period and fixed interest rates. In case, you want to withdraw money urgently - you cannot take out money in other investment option. However, you can take out your money anytime in the case of stock trading.
So, what kind of trading strategy you should follow in order to reap maximum profits from your investment? According to professional experts, there are certain points you need to follow in order to gain profits. These are mentioned below:
Educate yourself: Whether you want to invest in stocks or in any other places, you need to know about the plan. A comprehensive knowledge is a must for you - therefore, you need to educate yourself. In case of stock trading, you can access articles, blogs, reviews and other content on the Internet. In addition, you can also discuss with financial experts for the same.
How much you want to invest: For those who are experienced, they know how much they want to invest. On the other hand, those who are new investors, they need to analyze their financial strength and then invest accordingly. However, it is suggested that new investors should start with small funds and once they start earning profits, they can raise their funds in the future.
How to buy and sell stocks: Since, trading is done online, you can buy and sell stocks on the Internet. As far as buying and selling of stocks are concerned, a comprehensive market analysis is a must. Without comprehensive market analysis, you cannot buy and sell stocks on time. Therefore, use advanced analysis tools from the company's website and trade intelligently. In addition, stock quotes and charts are also important - read the chart daily and keeps you abreast of the market updates.
Follow these points and then trade accordingly. For future financial security, investment is a must for everyone. Save your hard earned money and build a strong financial backup. Your today's investment decision will definitely help you and your family in future. So, invest now.
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Thursday, June 26, 2008
Trading Forex Successfully is Easier Than You Think
We all know the statistics. 95% of the people that try to trade forex, fail. Is trading forex successfully really that difficult? Well, it is if you are doing what 95% of failed traders do. The majority of the people that start in forex usually do so because they see some kind of trading system that is drenched with indicators like stochastics, RSI, and any number of the countless lagging indicators that the trading software uses. The question remains how do you know what the market is doing if you are busy looking at the indicators?
Indicators serve the sole purpose of taking the price action of a currency, stock, derivative, etc.... and putting it through some kind of magical formula so it can be interpreted into something else. Instead of using an interpreter to read the market, traders should actually be the interpreter. If you watch many of the traders that trade for themselves on the New York Stock Exchange, you'll notice that many of them aren't very worried about where the stochastic is before they make a trade. They don't do that because all they really care about is where the price is.
Being able to trade using solely price action is an important step in trading forex successfully. If a currency goes up or down 100 pips within an 1hr. A trader should be able to understand why that happened and most importantly be able to take advantage of it. When properly trained, a person looking at a naked (no indicators) chart should be able to see the market in all its glory. All the information is right in front of them. The human mind is an infinitely better indicator than any moving average or RSI.
Make sure to check out my squidoo lens on how I learned to start trading forex successfully.
Article Source: http://EzineArticles.com/?expert=Jon_Ferraro
Indicators serve the sole purpose of taking the price action of a currency, stock, derivative, etc.... and putting it through some kind of magical formula so it can be interpreted into something else. Instead of using an interpreter to read the market, traders should actually be the interpreter. If you watch many of the traders that trade for themselves on the New York Stock Exchange, you'll notice that many of them aren't very worried about where the stochastic is before they make a trade. They don't do that because all they really care about is where the price is.
Being able to trade using solely price action is an important step in trading forex successfully. If a currency goes up or down 100 pips within an 1hr. A trader should be able to understand why that happened and most importantly be able to take advantage of it. When properly trained, a person looking at a naked (no indicators) chart should be able to see the market in all its glory. All the information is right in front of them. The human mind is an infinitely better indicator than any moving average or RSI.
Make sure to check out my squidoo lens on how I learned to start trading forex successfully.
Article Source: http://EzineArticles.com/?expert=Jon_Ferraro
Friday, June 20, 2008
How Does The Stock Market Work?
We often hear about the stock market reaching new highs and lows every now and then. There are statements like the Dow Jones Industrial Average rising 2 percent on a particular day, with advances leading declines by a margin of..."
The question arises: How does the stock market work?
You need to understand certain basic terms about stock market before understanding how it works.
What is stock?
The meaning of 'stock' can be better explained through an example. Suppose you want to start a grocery business. You buy the premises, the groceries, employ some staff, advertise and start your business. Let us say that you have invested $ 400,000 in buying the premises, building the racks and other sundry items. You spend, say, $ 200,000 on procuring supplies. At the end of the year, your gross income is, say, $250,000. Your net profit is $ 250,000 (income)-$200,000(expenses on supplies) = $50,000.
At the end of the second year your gross earnings are $260,000 and your net profit increases to $ 60,000. Your expenses remain unchanged. Now you assess that your net earnings are likely to remain around this figure at your present amount of investment in procurement of supplies.
You think of expanding your business. You calculate the total value of your investment that includes your investment on premises, sundry expenses, supplies and staff.
Going by the present inputs, the total value of your business is $ 400,000(premises)+ $200,000(groceries)+$60,000 (profits)=$660,000. Since you are in the business of making money and your business is also making reasonable profits, you may price your business at say $1,000,000 when you invite shareholders in your business.
Suppose your invite 10 or 20 shareholders. Each shareholder will have to shell out $1,000,000 divided by 10 or 20 to be an equal partner in your business. When deciding the business matters, each shareholder will have one out of 10 or 20 votes and will own the same ratio of its assets and profits.
Or, you may even like to keep half the shares to yourself and sell the remaining half shares to others. In this case, you will have greater say in business decisions and get the half the ownership and profits as well.
You may divide the total value of your business in still larger number of shares, say, 100, 1,000 or even 10,000.
Stock or share, at its basic, is really that simple. It represents ownership of a company's assets and profits.
Stock Exchange
While earlier you were running a private business, but with the participation of public at large, your business has become a public company. Moreover, the shareholders may not be interested in carrying on their partnership in your company and may like to sell off their shares to others.
Selling shares in this case may not be easy.
So in order to facilitate the trading in shares of such big public companies, stock markets or stock exchanges were set up. We have the examples of New York Stock Exchange (NYSE), NASDAQ and American Stock Exchange. They are the supermarkets for buying and selling shares.
There are two types of stock exchanges, one is the physical stock exchange and the other is virtual stock exchange.
Physical stock exchange
New York Stock Exchange-NYSE-- is an example of a physical stock exchange. In order to trade your shares, you need to open an account with a stock broker or a brokerage firm. The NYSE is a wild kind of place where the stock traders can be seen trying to out-shout each other while gesticulating with their hands trying to buy or sell the shares. These persons are called floor brokers. Your stockbroker actually contacts these floor brokers at the NYSE to buy or sell your shares. Millions of shares are bought or sold daily.
Virtual stock exchange
The advent of computers and broadband Internet has facilitated the trading in shares online through the Internet.
But, as said earlier, you cannot directly buy and sell the shares even online in the stock market. You need the services of stockbrokers or brokerage firms who also work online. The stock exchanges where online trading is carried out are called virtual stock exchanges. National Association of Securities Dealers Automated Quotations System or NASDAQ is an example of virtual stock exchange.
Share prices
The prices of the shares or the stock are determined primarily by the supply and demand position of the stock in question. The supply and demand of the stock, further, depends upon numerous other factors, which include the financial prospects of the company whose stock you are trading.
Why Choose Sogotrade: cheap trading stock options
Contact sogotrade:
Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
The question arises: How does the stock market work?
You need to understand certain basic terms about stock market before understanding how it works.
What is stock?
The meaning of 'stock' can be better explained through an example. Suppose you want to start a grocery business. You buy the premises, the groceries, employ some staff, advertise and start your business. Let us say that you have invested $ 400,000 in buying the premises, building the racks and other sundry items. You spend, say, $ 200,000 on procuring supplies. At the end of the year, your gross income is, say, $250,000. Your net profit is $ 250,000 (income)-$200,000(expenses on supplies) = $50,000.
At the end of the second year your gross earnings are $260,000 and your net profit increases to $ 60,000. Your expenses remain unchanged. Now you assess that your net earnings are likely to remain around this figure at your present amount of investment in procurement of supplies.
You think of expanding your business. You calculate the total value of your investment that includes your investment on premises, sundry expenses, supplies and staff.
Going by the present inputs, the total value of your business is $ 400,000(premises)+ $200,000(groceries)+$60,000 (profits)=$660,000. Since you are in the business of making money and your business is also making reasonable profits, you may price your business at say $1,000,000 when you invite shareholders in your business.
Suppose your invite 10 or 20 shareholders. Each shareholder will have to shell out $1,000,000 divided by 10 or 20 to be an equal partner in your business. When deciding the business matters, each shareholder will have one out of 10 or 20 votes and will own the same ratio of its assets and profits.
Or, you may even like to keep half the shares to yourself and sell the remaining half shares to others. In this case, you will have greater say in business decisions and get the half the ownership and profits as well.
You may divide the total value of your business in still larger number of shares, say, 100, 1,000 or even 10,000.
Stock or share, at its basic, is really that simple. It represents ownership of a company's assets and profits.
Stock Exchange
While earlier you were running a private business, but with the participation of public at large, your business has become a public company. Moreover, the shareholders may not be interested in carrying on their partnership in your company and may like to sell off their shares to others.
Selling shares in this case may not be easy.
So in order to facilitate the trading in shares of such big public companies, stock markets or stock exchanges were set up. We have the examples of New York Stock Exchange (NYSE), NASDAQ and American Stock Exchange. They are the supermarkets for buying and selling shares.
There are two types of stock exchanges, one is the physical stock exchange and the other is virtual stock exchange.
Physical stock exchange
New York Stock Exchange-NYSE-- is an example of a physical stock exchange. In order to trade your shares, you need to open an account with a stock broker or a brokerage firm. The NYSE is a wild kind of place where the stock traders can be seen trying to out-shout each other while gesticulating with their hands trying to buy or sell the shares. These persons are called floor brokers. Your stockbroker actually contacts these floor brokers at the NYSE to buy or sell your shares. Millions of shares are bought or sold daily.
Virtual stock exchange
The advent of computers and broadband Internet has facilitated the trading in shares online through the Internet.
But, as said earlier, you cannot directly buy and sell the shares even online in the stock market. You need the services of stockbrokers or brokerage firms who also work online. The stock exchanges where online trading is carried out are called virtual stock exchanges. National Association of Securities Dealers Automated Quotations System or NASDAQ is an example of virtual stock exchange.
Share prices
The prices of the shares or the stock are determined primarily by the supply and demand position of the stock in question. The supply and demand of the stock, further, depends upon numerous other factors, which include the financial prospects of the company whose stock you are trading.
Why Choose Sogotrade: cheap trading stock options
Contact sogotrade:
Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
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