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How are stocks bought and sold?

Updated: 8/23/2023
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16y ago

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Stocks are usually traded through an on-line brokers: or a full service broker. Usually, on-line brokers are less-expensive than full-service brokers. With either broker, the trader or investor must have a trading account. In the beginning "newbie" traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money. In the beginning you LEARN HOW: A] the Stock Market works. B] to invest in many, many various ways. C] to properly trade D] many other concepts and aspects. Beginning or novice ['newbies"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes. In the very beginning, you READ AND LEARN about the market and how it works: Read trading books written just for beginners. As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before. Use that book's glossary or do an on-line search. It probably won't be long when you'll feel you're ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. There are free, paper trading platforms; you can set up a virtual account and almost trade as though you were trading with real money. The thought processes are: 1] to have more successful trades than failing trades. 2] to minimize the losses of those losing trades. 3] "To live to trade another day." Having enough money in the trading account to return to the market. ALL this is accomplished by a few true expressions used on Wall Street: Some trading expressions come to mind: A] "On Wall Street there aren't any gifts." No one gives anyone else anything - not even stock tips. B] BUlls [BUyers] earn money. BEars [SEllers] earn money. Pigs get fat. Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts. C] "Trees don't grow to Heaven. Neither do stocks or any other investments." In other words: What goes up, MUST come down! D] "Plan your trade. THEN trade your plan!" Have a trading plan with rules for that plan for each strategy.

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16y ago
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12y ago

There are dozens of places on the planet where stocks are bought and sold, Stock market exchanges are what they are called and almost every major continent has their own.

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Related questions

Where is a place where stocks are bought and sold?

exchange


What was the place where stocks were bought and sold called?

A stock market


How are most stocks bought and sold?

Most investors purchase stock markets(or exchanges)


What is the actual building in New York City where stocks are bought and sold?

The New York Stock Exchange.


What is the definition of 'stock exchange'?

Stock exchange is a place where stocks and shares in businesses are publicly bought and sold.


What are marketing securities?

Marketable securities are stocks, bonds, and derivatives which are sold and bought in a public market such as a stock exchange.


Can a security be bought in one market and sold in another?

No. The security must be sold in the same market that it was bought in. Ex: In India you can buy stocks in both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) If you buy stocks of XYZ Ltd from BSE you can sell it only in BSE and not NSE


What is another name for a group of 100 shares of stock?

Stocks bought and sold in increments of 100 shares are referred to as "round lots".


What happens to your money once you buy a publicly traded stock?

Theoretically the money goes to the company whose stocks you have bought. But, pratically it goes to the person who sold the stocks. When you buy the stocks you buy ownership of that company from the person who already held it. It is like transfer of ownership.


What happens to stock when a firm is taken private?

When a firm is taken private, the stock cannot be bought or sold on the public exchange. This is called making the stocks illiquid.


Do you think some stocks are seasonal ex. XOM?

yes. just like more electronics are sold around xmas and gasoline prices spike during the summer (in AZ). A lot of stocks are sold on dec. 31 to get a tax credit. These may be bought cheaply. Google "stock December dogs".


Definition of stock market?

Stocks are bought or sold. The "market" refers to this activity. There are organized exchanges, such as The New York Stock Exchange A market in which securities are bought and sold. Its basic function is to enable public companies, governments and local authorities to raise capital by selling securities to investors.