Simple Way In Which Stocks Trade

Well it is a common notion that when a company has completed their initial public offering, the shares of the same become public and hence the can be traded...
Stocks Trade
Stocks Trade

Well it is a common notion that when a company has completed their initial public offering, the shares of the same become public and hence the can be traded in stock market. Stock markets are known to be destinations where the buyers and the sellers of the stocks meet up to decide the price on which the shares will be traded. Some mercantilisms are natural locations, where the dealings are usually carried out on an exchange ground.

However, most of the stock trading’s are virtual. These consist of wide network of computers and internet, mostly to make dealings easier. One advantage is that dealing data can be recorded electronically. Those who trade in stocks or keep a close watch on these topics very well know that, the share markets are basically secondary markets. Here the pre existing owners of the stocks directly deal with the prospective purchasers. It is however of specific importance, that the corporations who are named on the list of the share markets, do not actually buy or sell their own portion of stocks, on a mundane basis. It is the companies who actually engaged in the stock exchange or even provide new portion of shares. However this generally takes place outside the business networking. Lowest Brokerage Charges as expected from the discount brokers who offer a lower charge then the full service brokers. They provide a minimum of trading facility with the lower cost of brokerage.

Well now it must be clear to you that whenever you buy a component of share from the stock market, you are actually buying it from another existing shareholder, and not from the company directly. In a similar manner when you are selling those shares that you possess, you are not selling them directly back to the company. On the contrary you are actually selling them to other investors. The early stock exchanges are mainly some bond exchanges because those few companies actually did not grant any equity. The were in fact some of the earliest corporations who were basically considered as some semi public organizations; mostly because they had to be undertaken by the government, so that they can perform business. The first stock markets had appeared in around the 16th and 17th centuries, in Europe, along the port city areas and trading hubs like Amsterdam London etc.

Talking about trading in India the Securities and Exchange Board of India abbreviated as SEBI is in the sole charge of the responsibilities, supervision regulation and development of the share markets in India. This was formed in 1992 as an independent organization. From then onwards, the Securities and Exchange Board of India is consistently trying to lay down the market rules in alignment with the best possible market practices. In case of schism, they will enjoy immense powers of enforcing chastisement on the participants of the market.

 Sensex and Nifty are the two most popular and prominent Indian share market index, of which Sensex is the oldest for the equities. It includes a share of 30 firms as enlisted on the Bombay Stock Exchange or BSE.

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