Stock Trading: An Overview
Stock trading involves buying and selling shares in publicly traded companies. This typically occurs on stock exchanges.
When people buying shares of a company, they effectively become a small part-owner of that company and have some claim on its assets and earnings, in the form of dividends and/or capital appreciation.
The value of the shares depends on some factors, including:
- The company’s financial performance
- The company’s outlook
- The company’s overall market conditions
- The company’s investor sentiment
Chance to increase money quickly
High loss risk
you can buy and sell at any time
Those who do not know their way around can quickly invest in the wrong shares
Interest in business increases with purchase of shares
Borrowing to buy stock is risky
Simply private pension provision