When you come in contact with the share market, you are bound to come across stories of many fortunes which were made and later lost.
When one buys a share, it makes him or her partial owner of that particular company. There again are different types of shares. All these shares have different advantages and rights associated with each of them. Thus, when you buy a share and sell it at a comparatively higher rate, you earn yourself a profit. But in case the share price falls before you are able to sell it, then you incur loss. The market of shares depends on the business that you invest in. If the business you have invested in makes profit then you earn yourself a part of that profit dividend. You are always an anonymous part of the share trade.
If you are looking for a time tested formula to earn this profit on a consistent basis, then be warned that there are no such formulas in the trade. The only thing that you need to do is get an in-depth knowledge about the basics of stock trading. So, what does trading of stocks actually means? Well, it refers to the buying and selling of shares in the financial market. So, if you want to get started with trading, you will have to get in touch with a stock broker. This trading of shares can either be done on the exchange floor or through electronic trading.
Brokers can be found on the exchange floor and this is where they order the shares for you which you want to buy. Then, the floor clerk goes about locating the trader on the floor, also called the floor trader. The stocks that you want to buy are then purchased from the floor trader. The moment the price is agreed upon, you have your trading deal finalised. Apart from floor trading, electronic trading is also a common trading tool today. The electronic trading is considered to be a quick and efficient trading method. Though, even here you have a broker involved in between, but when it comes to confirmations, you receive them almost immediately afterwards.
Finally, your online broker will look to connect to the exchange network and look for an interested buyer or seller as per your requirements.

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