Stock Trading Market

Saturday, July 11, 2009

It is the market in which shares are issued and traded either through exchanges or over-the-counter markets. It promotes investment in corporate securities, providing capital for new businesses and income for investors. There are two main types of stock available to the public. The common stock is owned by many investors and it is more widely available. Companies generally offer this type of stock to the public to raise money. The preferred stock represents ownership of a corporation, but it differs in several aspects.Stocks that are handled by one or more stock exchanges are called listed stocks. Each and every exchange has its own criteria and standards. Once a company is listed, trading in its stock will be blocked if the company's financial condition devolves to the point that it no longer meets the exchange's minimum requirements. The different types of traders are scalpers, momentum traders, technical traders and fundamental traders.There are different stock exchanges that are offering stocks for investors. Out of all these, NASDAQ is the most popular stock exchange. Other largest stock exchange in the U.S. is New York Stock Exchange (NYSE), which is formed in 1792. The activities of the stock market are closely monitored by the federal Securities and Exchange Commission to prevent the manipulation of stock prices and other activities that lessen investor confidence. The third largest exchange in the U.S. is the American Stock Exchange (AMEX).