What is Share Trading? Share trading is the buying and selling of a portion of another company’s stock for an agreed upon price. A stock trader or stock investor or even share trader is someone or a company involved in buying and selling equity securities. Share trading can be done online, through a telephone conversation, by mail, or by fax. This activity has created opportunities for individuals to buy low and sell high, but it has also led to the collapse of many trading houses and even the loss of many investors. Some of the top names in share trading are Sears, Alcoa, Wal-mart, Microsoft, Xerox, and Enron.
Share trading can be done through a direct stock exchange, where shares are bought and sold in the same manner as trading in shares on the Over the Counter Bulletin Board (OTCBB) and Pink Sheet stock exchanges. An alternative is to use a discount broker that provides trading platforms that are accessible either by telephone or by Internet. Popular trading venues include E-mini, the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), the Canadian Securities Exchange (TSX) and the European Securities Exchange (ESX). There are also offshore stock exchanges. shares can be traded in shares of all sizes, from micro-cap shares of 500 shares to nano caps of a hundred thousand shares.
Share trading can be done through a mutual fund, a self-service trading account, in a trading strategy whereby the trader buys one security with one objective and sells another with another objective. Share investing is a way for individuals and companies to make money from their investment in stocks, options, futures and currencies. Some firms offer services that allow you to trade in the share market while traveling or working overseas. Many companies offer trading platforms that give you access to a virtual marketplace where you can buy and sell shares with the potential for spread and stop loss features.
shares are the product of interactions between buyers and sellers on the stock exchanges. shares are also the product of interaction between buyers and sellers on the stock exchanges. Shares represent ownership interests in companies. You may invest in shares of business corporations, limited liability companies (LLCs), partnership interest, government entities such as banks, investment trusts and pension funds.
Investors can buy shares of any type of publicly traded company in the United States and many foreign countries. The various types of shares include common stock, preferred or underlying securities, warrants, options, bank stocks, and exchange traded funds (ETFs). In the stock markets, investors can buy shares directly or through a broker. When purchasing shares, you are allowed to either call your broker or use the over the counter electronic communication system (OCE) to buy and sell shares.
Investors can have multiple trading accounts through brokers. Investors can trade in a variety of financial instruments through their investment portfolio. Some of these instruments include: bond trading, equity trading, currencies trading, interest rate trading, commodity trading and the futures trading market. It is important that all investors, whether new, experienced or retired, know about share trading and how it works before they begin trading shares.