Wednesday, June 3, 2015

Equity trading

In finance, equity trading is buying & selling of company stock shares, Shares în large publicly traded companies are bought & sold through one of major stock exchanges, such as New York Stock Exchange, London Stock Exchange or Bombay Stock Exchange, which serve as managed auctions for stock trades, Stock shares în smaller public companies are bought & sold in over-the-counter (OTC) markets,

Equity trading can be performed by owner of shares, - by an agent authorized to buy & sell on behalf of share's owner, Proprietary trading is buying & selling for trader's own profit - loss, In this case, the principal is owner of shares, Agency trading is buying & selling by agent, usually a stock broker, on behalf of client, Agents are paid a commission for performing trade,

Major stock exchanges have market makers who help limit price variation (volatility) by buying & selling particular company's shares on their own behalf & also on behalf of other clients,

Over past 15 years with popularity of internet & discount brokerage firms, it has become increasingly luring for average investor to partake în their own financial planning & direction of their future, Although trading can be incredibly stressful & dangerous financially, many people have made it their profession în place of 9 to 5 job, Individuals that pursue this non-mainstream career usually will have knack for technical analysis, money management, tape reading & trader's psychology as well as enjoy working în fast paced competitive environment

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