Stock market

    By
    Andrey Orlov
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    1385
    How do stock markets work?

    A stock market is a financial market where stocks and shares can be bought or sold. It acts as a central place to bring stock brokers and traders together to conduct business.

    For the most part, stock exchanges need no physical location: shares are now mostly traded electronically. The stock market enables companies to raise capital without borrowing money by issuing and selling shares.

    Also see:

    Trading & investing in shares

    Both traders and investors buy and sell shares. Investors tend to hold the shares for longer periods of time than traders.

    At tradimo, we want to be a great community for both investors and traders. In fact, we think that being a trader – and be it just on a small scale – helps you become a better investor. Similarly, being an investor helps you become a better trader, because the skills needed overlap and benefit each other.

    Even if you mainly want to make long-term investments into stocks, this knowledge can help you buy and sell at the right times. Even if you are convinced of the long-term prospects of a company, you might be able to buy them for a cheaper price tomorrow.