Trading of shares in a stock exchange takes place through registered broker. Buyer get in touch with the broker and gives him all details of the share he wants to buy. Broker in turn strikes the deal with the exchange and receives share certificate. similarly when the seller gives all the relevant information to the broker, he strikes similar deal with the exchange, get the money and after deducting his commission, transfers amount to the seller. Each stock exchange has certain listed and permitted securities that are traded on its floor.
Order can be placed using software provided by the broker.
Order can be 1. Limit Order, 2. Market order, 3. Stop Loss order
1. Limit Order: Executed only when the MP meets the mentioned price.
2. Stop Loss Order. Executed when the threshold is meet. If the stock is bought and if we are losing money on that deal, we set a limit. If the stock price goes below the limit, stock has to be sold to prevent further loss. Market Order: Executed at Market Price
Long: If we expect the price to go up, then buy the stock and sell at later.. This is Long position.
Short: If we expect the price to go down, then sell the stock and buy it later. This is Short Position.
Stock price is determined by demand and supply. If the demand is more, price goes up. when the demand is less and supply is more, price goes down.
Stock Price does not affect the company. The company drives the stock price. Price of the stock is the mere reflection of the company’s performance. Good performance indicator will increase the price.
Hi,
Keep up the great work!