What is stock trading? Stock Trading is trading stocks and shares of different types of companies and organization at the stock exchange. Stock trading is where people speculate on a specific move a stock may make over a short period of time. Stock trading is a game in which you cannot afford to be average.
Stock represents a claim on the company's assets and earnings. Stock typically takes the form of shares of common stock (or voting shares). As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions.
Shareholders have limited liability, which means they can only lose the amount they invested in the shares (personal assets are safe) if the company winds down. There are two types of shares: common and preferred. Share prices change because of supply and demand. If more investors want to purchase a stock, the price is raised. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash.
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