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Welcome, we aim to help you understand the International Stock Market, Improve your stock trading skills and tell you the truth about the stock Market. We do our best to help simplify the often confusing world of shares and stocks, it’s not that complicated and believe me there are no secrets to it. We will go through it all in simple easy steps without unnecessary jargons.

Understanding Stock Market

Stock Market is a way of owing part of a company that you do not manage or work for,
and gaining the ability to earn from a company's success.

Companies are either privately held or publicly held. When a company is "going public" that means they are preparing to launch an IPO (Initial Public Offering). Simply put, the soon-to-be-public company is to allowing the general public to invest in their company and therefore own part of their company. So, when purchasing what is refered to as a "share" of a company you are doing just that, buying your share (a certain percentage) of a company.

A stock is your little piece of the larger company that you own and control. Granted, if you own stock in a company, you most likely own a small percentage of the company. As an owner of the company, though, you are entitled to your piece of "worth" that the company earns along with voting rights attached to the stock.

The physical representation of owning a stock is the stock certificate. The stock certificate is an official document (piece of paper) that is proof of your ownership. With the invention and popularity of online stock trading, you may never actually see a physical stock certificate. The brokerage in which you belong to keeps the records of your ownership electronically. This process of having electronic "holdings" makes the trading of stocks as easy as a mouse click. You used to have to actually sell and hand over the physical stock certificate to the brokerage or person you were selling it to.

Major World Stock Exchanges

Most of the stock securities are traded on what are called stock exchanges. Stock exchanges are where stock traders come together to decide on the price of a stock security. If you have ever watched the opening bell being rung at the NYSE you have witnessed the opening of the day's trading on an exchange and on a trading floor. This is an example of a exchange with a real location, with real stock traders yelling and screaming on the trading floor to make their trades. There are also other types of exchanges which are virtual and therefore lacking an actual trading floor. These virtual stock exchanges are made up of a network of computers where the stock trades are executed electronically.

You could look at the stock market as the Ebay of buying and selling company ownership. That is, instead of having to travel around store to store, garage sale to garage sale to find the best price to own something or to find a buyer for what you are trying to sell, you instead log into the stock market and you are all set. Buyers can find sellers, and sellers can find buyers and trade their shares back and forth.

Over The Counter Bulletin Board

This is the home to the renown penny stocks. Not really an exchange by itself, but really a sub-section of the other exchanges. For example, any small public company of the NASDAQ that do not meet listing requirements are consider OTC stocks or penny stocks. Due to the lack of regulation that exists in this market sector risk can be very high.