| Stock market trading is a popular way to earn | | | | With online stock market trading, computer networks |
| money with unlimited earning potential when you | | | | are used as opposed to trading off the stock market |
| completely understand how things work. And with a | | | | floor. A large network of computers is employed to |
| few basic how to's, it can be easy to get started. | | | | match sellers and buyers in the electronic market |
| So What is Stock? | | | | instead of using human stock brokers. Although this |
| Stock is actually owning part of a company. Each | | | | method is not as bustling and exciting as the stock |
| share of stock stands for a small slice of ownership | | | | market exchange floor, it is quicker and more |
| in the overall corporate pie. When a person holds | | | | effective. |
| more shares, he owns a larger portion of the | | | | How To Get Started |
| company. Owning a greater portion of the company | | | | What is the first step to take when stock market |
| means bigger dividends are earned by the | | | | trading? Whether a person decides to invest |
| shareholder when the company profits. | | | | electronically or on the stock market exchange floor, |
| About The Stock Market | | | | the first step is to get an investment broker. |
| The stock market is the forum where publicly held | | | | To start traditional stock trading on the floor, a |
| company stock and related financial instruments are | | | | person requests the broker purchase a said number |
| traded. Financial instruments may include stock index | | | | of shares on the market. Once the request is made, |
| futures and stock options. Stock market trading is | | | | the order department for the broker forwards the |
| the actual sale or purchase of commodities or | | | | order to the floor clerk. The clerk then alerts a trader |
| securities in the stock market itself. | | | | to locate another trader who will sell the shares the |
| The Two Ways To Trade | | | | investor wanted. The deal closes when the two |
| Basically, there are two methods of stock market | | | | traders agree on a price with notification sent back |
| trading. The traditional way of trading occurs in an | | | | the same way. Ultimately, the broker gets in touch |
| open outcry manner on the stock exchange floor of | | | | with the investor to tell him the final price for the |
| the stock market. Modern stock trading is conducted | | | | shares. The entire process may take awhile, based |
| via electronic exchanges and all occurrences take | | | | on the current market and stocks. After a few days, |
| place in real time online. | | | | the investor will finally receive a confirmation in the |
| On the stock exchange floor, the stock market | | | | mail. |
| trading atmosphere is chaotic and noisy. The stock | | | | Investing electronically is much faster and far less |
| market is filled with hundreds of people gesturing, | | | | complicated. Computers match the buying and selling |
| shouting and rushing around when the stock market | | | | of stock in real time. Savvy investors have the |
| is open. Stock traders are seen chatting on phones, | | | | distinct advantage of instant updates on stock trade |
| entering data into computer terminals and watching | | | | happenings. |
| the consoles closely. | | | | |