Kievgid

Stocks or shares are defined as a chunk of the company that an institution or an individual buys that makes him a part owner of that company. As a part owner you get to experience company privileges such as voting rights. A shareholder also receives an annual dividend from the companys annual profits. For example you purchase 1,000 shares of MAC Company and the annual profit goes to $7.5 billion with 750,000 shares all-in-all, your annual dividend would be $10 million. That is just how simple the concept of stocks is. The dividend then is defined as the amount the shareholder would be getting from the companys profits in relation to the number of his shares.

Stock Trading is the act of buying and selling of stocks, it is sometimes called as the act of exchanging stocks at a stock exchange. Stock exchange is the place where people trade stocks on one roof. It is usually in the exchange floor where hundreds of brokers can be seen trading stocks for their clients. The stock exchange is the brilliant and quickest solution for company owners who want to advertise that they want to open their company for sharing.

The New York Stock Exchange (NYSE) is the biggest stock exchange in America today. In it we can see hundreds of brokers, all in chaotic activity and shouting at each other. Inside the NYSE is a large screen where the current market value and market situation can be seen. It shows the fluctuations and the rise in the market. Stock traders usually see this as an opportunity to sell their stocks so they could gain higher profits.

Stocks are a dynamic financial instrument because it does not possess a specific value. It goes up and it goes down, depending on the companys situation in the market. A lot of traders take this opportunity to sell their stocks in the market for instant profits also financial experts suggest that the best strategy is to buy and hold since there lies the true value in investment.

These are just some of the basics that one needs to learn about stocks and stock trading.