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Sunday, May 9, 2010

Introduction to Stocks

What is Stocks?








Stock or share is consider part of ownership in the company.

For example Company ABC, if you are having 1,000 units of Share Company ABC, it means you are having 1% ownership of Company ABC.


Stock Market

Stock Market is a place to trade your shares; a place where people can buy and sell on various kind of shares.

In a simple way, imagine you have some money, and you can go to the Market to buy a piece of cake. After you bought it, you can also sell the cake in this Market place.



Stocks Trading




Person A is call a seller; where Person B is a buyer. The place that they trade is called as Stocks Market.

Because there is a lot of people trade in Market, so there is 3 kinds of price we normally see in the Market:

Last Done Price - Price for last trading / transaction
Buying Price - Person B offer price
Selling Price - Person A demand price

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