Stock market trading
Stock market trading
is a private market for trading various types of securities in controlled and secure environment, it is also a secure and controlled market where their market participants easily transact in shares of different financial instruments with low operational risk, it is a market place where buyers and sellers of shares meet and trade at a certain price in, it’s a collection of exchanges markets where activities of buying and selling of publicly shares occur, these activities of buying and selling of shares occur under the defined set of regulations and formal exchanges policy, stock market trading include financial securities trading such as traded funds, corporate bonds or other, also include derivatives of securities such as stocks, commodities, currencies or other, it consider a global electronically market, also consider the most vital components of a free market economy, it helps in capital formation and economic growth of countries.
stock market trading characterize by price transparency, liquidity, price discovery and fair dealings, further more it also characterize by its trading systems which facilitates management of buying and selling orders for various market participants, also provide buyers and sellers with price matching service to facilitate trade execution at fair price to both, but Regarding to various functions of stock market trading, its functions are fair dealing in securities transactions, efficient price discovery, liquidity maintenance, security and validity of transactions, supporting of all eligible types of participants, investors protection and balanced regulation of corporate.
types of who work in stock market include stock brokers, portfolio managers, investments bankers, custodian and depot service providers and market marker, stock brokers are licensed professionals who act as intermediaries between stock market and investors by buying and selling stock on behalf of investors, portfolio managers are professionals who set investment strategies for investor's portfolio to easily take buying or selling decision, investment bankers are bankers who help companies to involve in pending mergers and acquisitions, they also take care of listing prices which compliance with regulatory requirements of stock market, custodian and depot service provides are institutes which are safekeeping investor's securities and minimize loses, market maker is a broker dealer who is posting bid price and ask price to facilities the trading of shares, also maintain an investor's shares.
Stock market trading look like primary market trading and secondary market trading, similarity between stock market trading and primary market trading include allow companies to sell their shares through initial public offerings to common public for first time, also provide companies market place where they sell their shares in, more over it receive a fee for its services from the companies and its financial partners, but similarity between stock market trading and secondary market trading include the listing process where the stock market act as trading platform, also facilitates buying and selling of the listed shares.
In stock market trading, Once company complete an initial public offering, its shares become public and can be traded on it, also their listed company can do many transactions like as follow on offer, buy back shares, more over their Companies can reward their investor by paying dividends which come from company's earnings, stock market also offer a level playing field to common individuals ,more over offers sector specific indicators which track the movement of overall market, and on official websites of stock market trading, investors can easily find all company news, announcements, financial reporting or other services.
In past time, stock market trading deal in paper based physical share certificates, but in present time, it deal in electronically by computer, further more Competent monetary authority is responsible for regulating stock market, also the Securities and Exchange Commission is responsible for overseeing stock market to protect investors and maintain In orderly market.