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HOW TO TRADE IN THE STOCK MARKET

HOW TO TRADE IN THE STOCK MARKET

Buying and selling with stock Market. A stock exchange is a place where different types of buyers / sellers exchange shares with each other. This is a common way buyers and sellers exchange shares for a specific price.

More about Stock Market In Pakistan

A stock exchange is a platform or place or stock exchange is centralized location where different companies perform the trading in form Shares. The stock exchange is main factor in the capital market. It is a safe place for trading. In Stock exchange trade are done with systemic way.

A stock exchange is a platform or place or stock exchange is centralized location where different companies perform the trading in form Shares. Publicly Shares are available for buying or selling exchange shared stock with two parties, one is called the buyer and the other is called the seller.  A stock exchange is a platform or place or stock exchange is centralized location where various companies accomplish the business in form Shares.

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Publicly Shares are available for buying or selling. The Buyer or Seller exchange shared stock with two parties, one is called the buyer and the other is called the seller or by versa. In fact, there are different types of companies registered in this place that offer their shares and the person who wants to buy the shares of his company and someone who can sell. Companies, using them to invest and resell, are making a profit as a result.

Stock Market Shares

STOCK-MARKET Shares
STOCK-MARKET Shares

The most common way of buying/selling shares in stock market is though trading or exchanges, where different kind of buyers and different kind sellers meet after that they decide on a trading price.

What is main Role of Stock broker in Stock Market?

A stock broker is an middle man who assists both parties

  • Buyer
  • Seller

The third party is the stock broker who helps both parties to buy and sell. In other words we can say that a stock broker can also play the role of a firm or a stock broker acts as an agent of both parties who take commission for its services.

What Is Main Aim of Stock Market?

The main role of the stock market is to facilitate the exchange of securities between two parties, one buyer and the other seller. Both parties in turn can overcome the threads / risks, which are almost related from an investment point of view. Therefore, the stock market is considered a risk-free market that connects buyers and sellers.

What are types of Stock Market?

This very important question about what are types of stock market?  Everybody know before investing in Stock market.  Two types of stock market that are as under

  • Primary Market
  • Secondary Market

Primary Market

Primary market is where the securities are through via an initial public offering (IPO)

Secondary Market

Secondary market means the investors buy and sell or trade already-issued securities without linking the issuing any companies. It is what people refer to when they are speaking about the stock market.

How we start trade in Stock market?

An investor or stakeholder has to trade from a stock exchange through a broker (registered) and does not need the direct involvement of any company. Every stock exchange has registered brokers / brokerages with commissions. All registered / accredited brokers / brokerage houses are allowed to trade on behalf of others in accordance with the rules, guidelines and protocols. Here are some key points to consider if you would like to trade.

  • The first point should be to ensure your trade against fraud / fraud and crookedness, to avoid fraud an investor should trade only through registered brokers / brokerage houses and agents.
  • Now question is How you know that agent or broker is register or not? For this you may check from the Security exchange commission of Pakistan website link is given below

Link

  • www.secp.gov.pk
  • From above web you done verification and authenticity of brokerage house/brokers/agents registration yourself.
  • Another important point before starting the trade first you must review or enquires the broker

Some Features of Stock-Exchange

  • A market for securities
  • Second-hand securities-
  • Regulate trade in securities
  • Dealings only in registered securities
  • Transaction
  • Recognition
  • Measuring device
  • Operates as per rules
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