Shares Trading is also known as Stock holder. Shares are a form of security that allows any investor to be a part-owner in a company and receive profits based on the company performance. Large-scale shareholding may even fetch investor voting rights in the company. Shares are issued by companies to raise capital to grow the business. This also adds to the overall appeal and creates a positive corporate image of the company. It is important for the shares of a company to be listed on a stock exchange before they can be publicly traded.
Share trading is the process of trading derivatives on shares of publicly listed companies with the aim to make a profit whenever there is a price movement without actually owning any underlying asset. Traders enjoy derivatives as they can access the market in a more time-efficient and cost-efficient manner.
The prices of shares are determined on the basis of the market supply and demand of the company shares. The pricing is heavily dependent on the ongoing or projected future performance of the company. Many factors such as company earnings, partnerships, press releases, and general market movements influence the price of a company’s share.