With a historical great performance, stocks are the foundation of the majority of trading portfolios. They are a good asset for both long-term and short-term investment strategies. Stocks are local and global, and you will have access in both categories through the Webtrader platform.
Companies issue shares publicly, so the public can buy, sell or trade, as consequence the value of the company shares will raise. The first time a company comes public is called IPO(initial public offer). After an IPO, there are two cases when the company reissue shares in the market.
Firstly, when the company decides to raise the number of shares, and secondly, when a shareholder resells its shares to other stakeholders. In the second scenario, the total number of shares does not change.
As per any other kind of asset, the demand and supply defines the price of the asset. How? When demand for the asset is higher than the supply, it means that more buyers are asking for the asset, the price increase. When less buyers are asking for the asset, its shares lose value and the price will decrease.
If the interest rates are lower, demand for funds is higher and the demand for shares rises as consequence. On the other hand, high interest rates decrease the demand for funds and the demand for shares gets lower.
Long-term and short-term investors
Different traders take into consideration different factors. A short-term trader is focused on technical factors like inflation, trends and demographics. A long-term trader is focused on fundamentals like the earning rates of the company, the success of the company in recent years, financial events and news. In few words, technical and sentiment analysis are the weapons of short-term traders and news for the long run.
The marketplace defines the stocks prices. Seller supply and buyer demand will meet in the market, there is no guarantee that let traders know what the share price will be. The marketplace includes many factors which influence simultaneously the price of the shares.
WHY TRADING STOCKS WITH 5markets?
IPO stands for Initial Public Offer. Companies prepare to go public on the stock exchange and publicly traded. This is the main source for the companies to ‘use’ public money to grow their market value. After it first comes public, they are only two options to issue additional stocks.
First, the company itself issues new stocks to grow its market value and the second is when one of the most powerful shareholders sells his shares. In the second scenario the total number of shares remains the same. The ownership of the same stocks has changed.
When it comes to going public, companies consider many factors to decide where to be listed, such as: In order to choose where to list, companies take various factors into account, such as: location of the corporation and the exchange, type of exchange, listing and compliance costs and accounting policies to be followed.
A share price is defined by the supply and demand. Supply refers to how available the shares are, and demand refers to how much traders ask for that particular stock. Low supply and high demand causes the price to go up, otherwise a high supply and a low demand causes the price to go down.
As already said stocks are traded in stock exchanges. The largest exchanges according to the market capitalisation are: New York Stock Exchange, NASDAQ Stock Exchange, Tokyo Stock Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange, Euronext, London Stock Exchange , Shenzhen Stock Exchange , Toronto Stock Exchange, Bombay Stock Exchange.
LIVE STOCKS DATA
WHAT SORT OF TRADER ARE YOU?
Is it the first time you are facing financial markets? Well, go with one of the accounts, tailored for beginner traders. You can start with $ 250 as a minimum, or any amount up to $ 2,500, so you take advantage of what a beginner account provides you with.
Do you have a couple of years in financial markets and have some basic knowledge and experience? We provide a tailored account for this category starting with a minimum investment of $ 2,500 up to $ 25,000. Enjoy additional trading privileges coming along with higher investments.
For any professional trader and investor, we provide privileges for people who trade daily for many years now, advanced accounts are serving trading services and standards which will put your experience in a higher level, and make you expand your expertise and knowledge.
MAIN INFLUENCERS IN AGRICULTURE TRADING
Ask & Bid Price
Ask - The seller wants to sell his shares at this price.
Bid - The buyer is willing to buy the stock at this price.
Bear & Bull Market
Bear market - A market where the prices tend to fall.
Bull market - A market where the prices tend to grow.
Liquidity & Volatility
Liquidity - It is referred to the volumes of the stocks available to buy or sell.
Volatility - It presents the price movements, the bigger and faster the swings, the higher the volatility, the riskier the stock is.