Online Trading Stocks
Online Trading Stocks
 In Online
Trading Stocks Legend has it that Joseph Kennedy
sold all the stock he owned the day before "Black
Thursday," the start of the catastrophic 1929 stock market
crash. Many investors suffered enormous losses in the
crash in Online Trading Stocks, which became one of the
hallmarks of the Great Depression.
What made Kennedy sell? According to the story, in Online
Trading Stocks he got a stock tip from a shoeshine boy. In the
1920s, the stock market was the realm of the rich and powerful.
Kennedy thought that if a shoeshine boy could own stock,
something must have gone terribly wrong.
Now, plenty of "common" people own stock when Online Trading
Stocks. Online trading has given anyone who has a computer,
enough money to open an account and a reasonably good financial
history the ability to invest in the market. You don't have to
have a personal broker or a disposable fortune to do it, and
most analysts agree that average people trading stock is no
longer a sign of impending doom.
The market has become more accessible, but that doesn't mean
you should take online trading lightly. In this article, we'll
look at the different types of Online Trading Stocks, as well
as how to choose an online brokerage, make trades and protect
yourself from fraud.
Review of Online Trading Stocks
Before we look at the world of online trading, let's take a
quick look at the basics of the stock market. If you've already
read How Stocks and the Stock Market Work, you can go on to the
next section.
A share of stock is basically a tiny piece of a corporation for
Online Trading Stocks. Shareholders, people who buy stock, are
investing in the future of a company for as long as they own
their shares. The price of a share varies according to economic
conditions, the performance of the company and investors'
attitudes. The first time a company offers its stock for public
sale is called an initial public offering (IPO), also known as
"going public."
When a business makes a profit, it can share that money with
its stockholders by issuing a dividend. A business can also
save its profit or re-invest it by making improvements to the
business or hiring new people. Stocks that issue frequent
dividends are income stocks. Online Trading Stocks in companies
that re-invest their profits are growth stocks.
Brokers buy and sell stocks through an exchange by Online
Trading Stocks, charging a commission to do so. A broker is
simply a person who is licensed to trade stocks through the
exchange. A broker can be on the trading floor or can make
trades by phone or electronically.
An exchange is like a warehouse in which people buy and sell
stocks. A person or computer must match each buy order to a
sell order, and vice versa. Some exchanges work like auctions
on an actual trading floor, and others match buyers to sellers
electronically. Some examples of major stock exchanges are:
• The New York Stock Exchange, which trades stocks
auction-style on a trading floor
• The NASDAQ, an electronic stock exchange
• The Tokyo Stock Exchange, a Japanese stock exchange
Worldwide Stock Exchanges has a list of major exchanges.
Over-the-counter (OTC) stocks are not listed on a major
exchange, and you can look up information on them at the OTC
Bulletin Board or PinkSheets.
When you do Online Trading Stocks,
you're using an online broker that largely takes the place of a
human broker. You still use real money, but instead of talking
to someone about investments, you decide which stocks to buy
and sell, and you request your trades yourself. Some online
brokerages offer advice from live brokers and broker-assisted
trades as part of their service.
If you need a broker to help you with your trades, you'll need
to choose a firm that offers that service. We'll look at other
qualities to look for in an online brokerage next.
Online Trading Stocks
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