Stocks are an investment that allows you to own a portion of a public corporation. Stocks represent ownership in a publicly-traded company. When you buy a company’s stock, you become part-owner of that company.
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The stock market works much in the same way as an auction – buyers and sellers negotiate a price that they are both comfortable exchanging for an asset, in this case shares of companies.
Companies that wish to raise capital will list their shares through the process known as an initial public offering (IPO). Once their stock is public, individual investors and institutions can start to trade the shares.
Open an account to start trading CFD in shares. Once you’re set up, you can decide which shares you want to trade, research the company and industry it’s in, and then open your first position.
If you believe that a company will see strong growth, buy the shares, for a low price so that you could make a profit when you sell it at a later date.
And if you believe a company will face trouble, then sell the shares, aiming to make as much as possible for shares so that you could turn a profit or cut a loss.