Firstly,the stock trading takes place when buyer broker and seller strikes a deal with their decided price.The broker ensures the counter party risk.People choose stock trading to get returns in a short period of time.The important terms in stock trading are long,short,long unwinding and short covering.We can buy and sell order with the help of a broker and there is no limited time period.The demand and supply decides the price of the stock.There are two more important terms-Positional and Intraday trading.We should always have a trade plan which can help in reducing risks.

  • : Buyers gets in touch with brokers,and gives him all the details of share he wants to buy.Then the broker strikes a requsite deal and recieves share certificate.The seller also gets in touch with broker and gets the details of shares.When the deal strikes the broker gets the commission.
  • : All the traders are connected through certified brokers,and it is the responsibility of the broker to ensure the trading is organic.
  • : people choose stock market trading to earn money in a short period of time but doing it so, they will have to understand the analysis and concepts of stock trading,if not,they have more possibilities of risk other than returns.
  • : Yes,it is possible to buy stocks from BSE and sell it on NSE and vice versa but this cannot happen in one day (intraday).
  • : If we quote high price to buy a stock compared to its current market,we will be placed first in que and recognized as the best buyer.
  • : We can place order with help of brokers or online trading. Two types of orders-BUY AND SELL ORDER Validity is totaly upto buyers and sellers of orders.
  • : Buying of stocks expecting the price to go up is called long. Selling of stocks expecting the price to go down is called short. Selling of stocks which are already bought are called long unwinding and buying stocks which are already sold are called short covering.
  • : Stock trading is a business when we understand the risk and reward concept i.e. when we can manage risks with rewards whereas trading can be gambling when it goes to total risk taking without analysing the rewards.
  • : Demand and supply decides the price. Higher the demand,the price increases. Higher the supply,the price decreases.
  • : Positional trading is trading which takes place over a period of time whereas Intraday trading happens in a single day.
  • : When the price is expected to go down the traders sell stock before they buy i.e creating a short and when the price goes down as expected he earns or he should accept the loss.
  • : Trade plan is the plan which helps us in deciding when to buy/sell ,which instrument to use,and when to exit the market.It is essential in reducing risks involving.
  • : Yes it does.
  • : Does stock price affect the monetary aspects of the company?how?
2 Comments
  1. Naresh 3 years ago

    Hi,
    Your Question: Does stock price affect the monetary aspects of the company?how?
    Actually, the company gets the money during IPO and price changes of a stock affects only the buyers and sellers of the stock. so, the stock price may not impact the performance of the company, but the performance of the company may influence the stock price.
    Hence the stock price is driven by company performance and the company does not affect by the buying and selling the shares. However, the share price may have an indirect impact on the company performance, for example, a declining share price will make it hard to get a loan, can’t attract further investors, difficult to build partnerships, goodwill etc…

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