But first things first. Shares - these are securities that support the introduction of an investor 's own share in the authorized capital of the company shareholders, which should provide him profit as dividends. Sale and purchase of shares in the stock market provide mechanisms. In economics, the stock market can be subdivided on - primary and secondary.
In the first case the shares fall into the hands of investors directly from the companies that issued them (the issuer ), and the name of this initial placement. After that companies lose control over them and get shares on the secondary market, where they were only available from the investor and not the company that issued them.
Issue of shares enabling companies in the process of becoming, draw, so additional capital. Investments in high-growth businesses offer opportunities to earn much more money than was originally invested .
CFD trading can be very attractive for those who have a desire to work with the underlying asset , but suffers from a lack of funds . After trading CFD, is a trader with the same result as in the immediate work in the market of the underlying assets, such as stock market, for example.
Equity markets offer both exchange and OTC trading. In the first case, trade is organized in a structure that has the name of the stock exchange. To buy and sell shares on the stock exchange of its shares to the issuer must be registered on the stock exchange, in other words, go through the procedure of listing.
On the OTC market shares fall who are not registered on any of the stock exchanges, because of non-compliance or initial focus on markets outside the exchange.
Stock trading, as well as any other activity, has its pros and cons. The positive is that the stock market, the income can be obtained at the earliest after the investment, the timing, as well as in other financial markets. Internet trading platforms and allow the trader to trade regardless of its location, constantly tracking the state of the stock market, controlling and analyzing it.
Disadvantage - lower profitability compared to futures and forex. Impossibility of short transactions significantly reduces the potential profit that can also be attributed to the disadvantages of stock trading.
Advances in information technology, to give people the Internet, allowing retailers to deal with buying and selling of currencies and stocks from anywhere in the world. So many traders are wondering what to choose?
Forex and stock trading is definitely different, even the nature of buying and selling items. In many world stock markets, but not fewer factors determines the rise and fall of stock prices, which require constant monitoring and analysis. Forex trading involves the buying and selling currency pairs, when a trader is buying the currency of one country sells it to another, based on the economic and political factors between them.
Foreign exchange market - the largest market in the world, which means that the currency pairs have greater liquidity than stocks. Forex trader is much easier to enter the market and out of it, whereas relatively less liquid stocks, the trader can introduce a lot of problems, especially during the economic downturn .