What is Shares Trading?
Shares are single units of ownership interest in an organization, financial asset or mutual fund which offer an equivalent allocation in any profits made (if any are declared), which comes in form of dividend.
Essentially, they are exchangeable value of an organization that could rise and fall as a result of many other determinants in the market.
How does it work?
Buying and Trading of shares is carried out on a stock exchange, and it is even easier these days because trading common public shares can be done electronically. So, you can place a buy or sell order with your computer which is coordinated via exchange-operated software.
In simple terms, a buy order is a declaration of interest in purchasing definite portion of shares in an organization while a sell order is an indication that the party that places this order has the intention of selling a certain portion of an organization.
So, immediately an order is filed, a seller finds a buyer or the buyer finds a seller and that is just the first stage. The parties (buyer and seller) involved have only some days to make an agreement and carry out all the necessary transactions.
Trading shares can be carried out via two ways; one which requires employing the services of a broker who will take care of most of the trade for you. The other involves the use of an online share trading platform, and here you will handle everything by yourself, you are at full control.
Why Trade Shares?
Depending on why you are investing, there are a lot of benefits that comes with trading or in shares. So if you are looking to venture into it, you might as well want to know the benefits in-bound and here are some of them.
Profits come from short-term change in the value of the shares, which means you can make your profit in a few days and sometimes in hours!
With advancements on in the internet and computing, traders can now get low commissions and high returns on trades.
Trading shares requires a low investment.
The shares market is very liquid, which means that these assets can be quickly bought and sold in the market over a short period.
Accessibility: Particularly for newbie, a low barrier to entry makes dealings very easy and understandable.
It is now left for traders to make the best out of this very versatile part of the market.
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