Investing in Stock
Stock investment knowledge is essential for any investor who wants to join stock investment business. In today’s era our financial markets are marvels of technology efficiency and most of the trade and investments are done online. If you as a beginner investor have all the knowledge about investing than you have a better chance to make profits on your share trades. We have put together information and advice that will get you better understanding of Stock investment in New Zealand
Stock are just pieces of companies that you can buy and sell and investment is the process of purchasing assets in order to make profits. Therefore, stock investment is purchasing stocks (assets) from a company to make profits.
Profits earned by stock investments may to lead to your improved standard of living, retirement funds, marriage, education, vacations, entertainment, and medical expenses etc. Stock investment plays an important role in the industrial development of a country as it offers useful services to investors and borrowing companies
Stock exchange (also called stock market or share market) is form of exchange which provides services for stock brokers and traders to trade stocks, bonds and other securities. It is an organized market for buying and selling corporate and other securities.
Stock trading is a place where the stock trader or investor buys and sells trade on a large scale in the financial markets. There are many companies in NZ that provide services about stock marketing. Stock trade market increases and decreases according to the condition of the market. If the shares of any company increase rapidly than the investors who have share in that company will profit. Stock trading can be done online or offline.
Before entering in the stock trade marketing it is important that you understand all things about stock trade marketing. Then decide in which company you would like to invest, to make shares and then get all the information about that company, if you face difficulties than consult to your broker for smooth running of your trade business. Most importantly, if you are a beginner at trading than it is wise not to invest big money at the beginning and always be updated about your share positions in the market. Better understanding of stock trading will help you as an investor in many ways, like you will know how to choose a good stockbroker and a good investment company that will ensure good return profits.
Stock market is a public entity for the trading of company stock (shares) at an agreed price. Stock market is considered as a very important sector in the market economy as it gives opportunities to the companies to accumulate greater capital and the investors to gain profits.
The stock market is one of the most important sources to raise money for companies. Stock market allows businesses to be traded publicly and raise additional financial capital for expansion by selling shares of ownership of the company in the public market.
Online Stock Trading
Online stock trading is trading online with unique trading platforms. These trading platforms allow investors to purchase and sell securities as fixed income, stock and mutual funds. The platforms online offer tools to track and monitor securities, research tools and up-to-date quotes and news releases that are necessary to trade profitably.
Investors can now order directly online or even trade with other investors through electronic communications network. Some online orders are still routed through the broker. Online brokers are known as discount brokers and there fees and commissions are significantly lower than those of full service brokerage firm.
A stock chart is a graphical representation of the stock prices over a set period of time, they are used to determine the past price behavior and also determine the price in the future. There are four main key areas that you as an investor should be familiar with and those are:
- Identification section- these will include the name of the company, trading symbols, where the stock exchange was traded.
- Time frame
- Volume- stock volume is the measure of the number of stock share that have been exchanged.
- “X” and “Y” axis
There are three basic types of charts:
- Bar chart
- Line chart
- Candlestick charts
New Zealand stock Exchange (NZX) is based in Wellington, New Zealand. They offer stock trading services in NZ and all over the world. It also regulates and surveys a countries capital markets. It has three main markets:
- New Zealand Stock Market (NZSX), the premier equities market;
- New Zealand Alternative Market (NZAX), for smaller and growing companies; and
- New Zealand Debt Market (NZDX), for corporate and government bonds and fixed-income securities.
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