What a Beginner Need To Know About Stock Trading by Agwu Chukwuemeka

Historically, the era of stock market started in 1863 with Wall street in New York city with the establishment of New York Stock Exchange. Over the years, the existence of stock market in nations has become a key indicator of its level of economic development and sophistication.

The stock exchange also known as the capital market is a platform where you can buy and sell shares, bonds, stocks, debentures and other capital market instruments. It could be a trading floor or through an electronic device. A share is what one has in order to become a member of a company. Share could be acquired through public offers also known as primary market, or from the trading floor of the exchange. Buying and selling of share is normally done through a stock broker.

A stock broker is a dealing member of the stock exchange who provides services to anyone who wants to buy and sell a share. If you buy a share of a company, you become a member (a shareholder) of that company. To be a shareholder or a member means that you share in the profit of the company. Companies issue shares which represent the money which the shareholders (as members of the company) put down when the first invested in the company.

Owners of shares (shareholders) are presumed to own the company. If the company makes profit, the shareholders have the right to share of the profit which is declared for distribution. A slice of the profit is called dividend. It is not a fixed amount.

People invest in shares for many reasons. It may be for the dividends, bonus shares or for capital appreciation. Whatever may be the investment objective, most investors have their eyes on how to maximize the returns on their investment.

Agwu Chukwuemeka Odi is an expert in the field of stock trading. Visit http://stocktradinginseconds.blogspot.com for more information on stock trading.