Stock are traded through an exchange via a broker who maintains traders accounts. Orders are passed to an exchange where trades are executed. The prices of stocks are determined by buyers and sellers due to a number of macro and micro factors affecting the nation and the firm. different orders are buy and sell. One cone an take a position in trades. An order in which buys a stock and sells at a later period is a positional trade . A trade in which the stock is purchased and sold the same day is called intraday. One can take long, long unwinding, short and short covering positions of trade. A long is one in which one buys in a rising market. Llong unwinding is one in which the long is exited. Short is a sell without owning a stock . short covering is exiting the trade after a buy. Stock prices reflect the value of a company . However it does not affect the internal financials of the company