The Stock Market is the market place in which stocks are bought and sold. Basically stock refer to the capital raised by companies by means of sharing out the company to investors. The shares or stocks are traded like any othercommodity like gold, oil, wheat, rice and so on. The market place itself may be physical or virtual (when trading online) and is also called the Stock Exchange.

The process of trading

Buying and selling stocks are like any other business deal – one person sells a stock and another person buys it. Originally buyers and sellers met in the stock exchanges and agreed on a price of a given stock. This took place on the trading floor and it still does – this is what is shown on TV when reporting from the stock markets. Traders are are shouting out their offers and bids – this is called “open outcry”. However now a days most of the trading takes place online.

Trading stocks online

Online trading of stocks has taken place for a very long time, but with the arrival and growing popularity of the Internet, everyone with an Internet connection can trade stocks within their own home if they so pleases. One of the most essential tools for the private investor is the desktop stock ticker. The desktop stock ticker is similar to the stock ticker seen on the financial channels, where stock prices are shown.

Benefits of online stock market trading

There are many benefits of trading stock online. Choosing where and when to trade are two obvious benefits, and by the aid of the free desktop stock ticker you can easily pick the right time to buy a given stock. Another benefit of online stock trading are the trading costs; when you do all the trading yourself you save the fee to the broker.

Disadvantages of Online Stock Market Trading

Trading stock online has a disadvantage compared to Forex trading as it has much lower leverage – this means that profits are lower. Short selling stocks are not that easy, which means that you have to wait for some time for the stock to go up.