Companies go public through IPOs and issue their stocks to raise their value and boost their business activity. Investors and traders buy stocks to diversify their portfolios and make money. Stocks prices move up and down, making the value of the company increase or decrease respectively. Individual stocks of tech companies and pharmaceutical ones are the most preferable nowadays.
Depending on the results of the analysis you have done in advance, you need to open a buy or sell position on the preferred stock. If your analysis was done right, you will be on the money, otherwise you will be out of the money.
Stocks are pieces of a company which give the person who buys them, ownership of the company. If you own a stock you are called a shareholder or a stockholder. You are entitled to a fraction of the company earnings, which goes in proportional with the number of shares you possess. Stocks can be bought, sold and traded. Usually they are traded in stock markets.
Why trading Shares?
When it comes to going public, companies consider many factors to decide where to be listed, such as:
In order to choose where to list, companies take various factors into account, such as: location of the corporation and the exchange, type of exchange, listing and compliance costs and accounting policies to be followed.
A share price is defined by the supply and demand. Supply refers to how available the shares are, and demand refers to how much traders ask for that particular stock. Low supply and high demand causes the price to go up, otherwise a high supply and a low demand causes the price to go down.
As already said, stocks are traded in stock exchanges. The largest exchanges according to the market capitalisation are: New York Stock Exchange, NASDAQ Stock Exchange, Tokyo Stock Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange, Euronext, London Stock Exchange , Shenzhen Stock Exchange , Toronto Stock Exchange, Bombay Stock Exchange.
When you decide to diversify your portfolio in stocks, you need to understand some crucial concepts:
Ask – The seller wants to sell his shares at this price.
Bid – The buyer is willing to buy the stock at this price.
Bear market – A market where the prices tend to fall.
Bull market – A market where the prices tend to grow.
Liquidity – It is referred to the volumes of the stocks available to buy or sell.
Portfolio – It is a collection of assets a trader owns.
Spread – The difference between the ask and bid price.
Volatility – It presents the price movements, the bigger and faster the swings, the higher the volatility, the riskier the stock is.
Which shares should I trade?
We have chosen the most esteemed italian companies and you can invest your capital in any of them. They are available in the Web Trader platform. Trading in international italian brands like Ferrari, Intesa SanPaolo is one single click away.
The German stocks are very profitable because german companies are among the oldest and most powerful stocks in the world. Since the German economy is currently the largest economy in the old continent, trading on its stocks is a smart choice yet challenging enough and requires a lot of effort to study the patterns of the price stocks.
The Spanish economy comes 5th in the European economy. It used to come directly after Germany in the car manufacturer industry. The country is also known for other industries and specialities.
The largest companies in the US have a large impact on the American economy and to the rest of the world also.
American companies have many years in the market, they are continuously adapting to the changes of the technology, government issues, charges and new fiscal policies.
The United Kingdom economy comes in the top 5 world economies. The U.K. is made up of England, Scotland, Wales, and Northern Ireland. The economy is well diversified and life quality is considered to be high.