Stock market trading is one of the most rewarding occupations that one can ever choose. Gone are the days, when only wealthy people could afford themselves investing in the stock market since today the market is open and available to anyone regardless of their social status. In fact, the reasons why so many people across the world get involved in stock trading vary, but there is just one that unites them all – the desire to make a fortune. Actually, stock market trading has a potential to be extremely lucrative and there are people who make a living out of trading, but it’s worth mentioning that making money never comes without effort. So, one needs to have the corresponding knowledge, self-discipline, dedication and what the most important is -patience to achieve success in stock market trading.
Stock Exchanges : The New York Stock Exchange and the NASDAQ
As is known stocks are traded through various stock exchanges. In fact, an exchange serves as a market, where stock buyers meet stock sellers and make deals. The primary and perhaps one of the most important tasks of an exchange market is to help provide liquidity or in simple terms, an exchange provides a place, where sellers (companies) can “liquidate” their shares.
The two biggest and yet the most popular stock exchanges in the world are the New York Stock Exchange and the NASDAQ.
The New York Stock Exchange, which is perhaps the oldest and the largest stock exchange in the world based on the total market capitalization of its listed securities, was founded in 1792 and is headquartered in New York City. The New York Stock Exchange has been operating for a very long time and that is the main reason why it is considered to be home to the majority of the world`s largest and famous companies. In fact, all foreign-based companies can find their place and list their shares on the NYSE in case they follow certain Securities and Exchange Commission (SEC) rules, in other words the listing standards. Nowadays, more than half of all trades on NYSE, which is also known as “Big Board”, are conducted electronically, however, it still uses the open outcry system, when the representatives of traders, known as brokers, meet and announce prices at one another in order to make deals.
The NASDAQ or the National Association of Securities Dealers Automated Quotation was created by the National Association of Securities Dealers (NASD) in 1971. Unlike the NYSE, the NASDAQ does not have a physical trading floor and trading there is conducted through the telecommunications network. In fact, NASDAQ is typically supposed to be a high-tech exchange market due to the fact that it includes firms which deal with the Internet and electronics such as Apple, Facebook, Google, Microsoft and many more.
Stock market trading with IFC Markets