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Any Trade That Involves Buying or Selling of Shares Is Known As Stock Trading

May 22, 2012 | Comments: 0 | Views: 104

Any trade that involves buying or selling of shares is known as Stock Trading

Stock trading involves in dealing of investment funds, hedge funds, mutual funds and pension funds. It also involves in dealing with venture capital, equity investment, fund management and wealth management.

Stock trading is normally conducted by stock brokers who buy or sell shares on behalf of stock investors. It's the stock brokers who normally advice stock investors about which shares to buy, hold or sell.

The stock broker is usually a professional. He is backed by a strong research regarding the company of which the shares are a part of. Based on his research, he guides the investor on whether he should buy, sell or hold onto the stocks.

Stock Investors are mostly individuals who buy stocks with the intention of holding them for a long period of time, usually for years. Their main motto is to accumulate dividend for passive income objective. They mostly depend on fundamental analysis for their investments and fully understand recognize stock shares as a part ownership in the company or the organization of which they have purchased the stocks of.

Stock traders advise these stock holders and help them to manage their portfolios. Traders who engage in selling and purchase of bonds, stocks, futures, shares in hedge funds also conduct extensive research and observation on how these financial markets will perform.

Professional stock traders, who work for a financial company, are asked to complete an internship of 3 months before they establish themselves in this career.

In India, most of these professionals require a MBA in the field of finance or economics to pursue such careers. There are various other exams and tests which these professionals have to give before becoming a thorough professional in the field of stock markets.

Though a stock broker gets commissions for every sale or purchase, he has to be particularly very careful while guiding the investor in which stocks he should generally invest in.

If the stock market crashes due to a particular reason and the seller suffers a loss, the broker has to incur the losses occurred and ensure that such incidents don't take place again or he stands a huge risk to not only get his license cancelled or lose the good will of his investor-customers who have not only invested their money but also put their faith and time in the brokerage firm.

B Vaibhav is working as an SEO in Angel broking. Angel Broking is one of the best stock broking and wealth management companies in India. Angel Broking offers various products and services to Indian investors including online stock trading, mutual funds, derivatives trading, commodity trading, IPO, PMS and investment advisory services.

Source: EzineArticles
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