Online Stock Trading

What is Online Trading?

This is the latest trend in Stock trading, where share transactions are done via your computer connected to the Internet and your stock broker. 

Online trading will give the investor immense freedom, to do whatever he wants with the money he has invested. Most brokers provide this sort of facility and with some knowledge on the Stock market, one can do his own trading and be a self-made millionaire. 

How is it done?

Today almost all the brokering firms are willing to provide online trading facilities to their investors. For them it could reduce their work load and also take off the risk of managing the portfolio. However for a keen investor Online Trading can be of alot useful. 

When requested for the Online trading facility from your stock broker, they will provide you with a software to access the stock market via the broker. The most used software and the best software for this would be DirectFN Pro. It provides real-time access to the market and hence ideal for Day Trading purposes as well. DirectFN provides real time charts, graphs and many technical analysis tools. So it can be identified as an all-in-one tool for stock trading. For more information visit DirectFN.com

Another massively useful software fro Technical Analysis. It specializes on providing the best Technical analysis tools to make a better decision in trading stocks. For more information and screenshots visit here.

The above mentioned sorftware can be freely downloaded from the links given below.

Happy Trading.

To download DirectFN Pro click HERE.

To download AmiBroker 5.3 click HERE.

To download AmiBroker 5.3 Crack click HERE.

What is the Stock Market/Stock Exchange?

Stock Market

Stock Market or commonly mentioned as Stock Exchange is the market where stocks/shares of listed (Quoted Public Limited Companies) companies are being traded or bought or sold among buyers and sellers. It's as simple as that. But the process is much more complicated than that. 

Let's see how a company enters the Share Market. There are basically two ways, namely;

1) IPO - Initial Public Offering

2) SPO - Secondary Public Offering

IPO

An Initial Public Offering is where a company ENTERS the stock exchange with a share issue to the public. If the share issue is successful (meaning if all shares are bought by the public) it will be considered a valid share issue and the company name will be listed in the stock exchange and allowed to function as a PLC. However if the shares are not fully subscribed (bought) by the public, the IPO will be considered void or a failure and the Stock Exchange will not allow the company to proceed with it's business activities. 

Entering the market with an IPO involves some risk due to the above factor. If the public doesn't feel like the company is a safe and worthwhile investment, they will not buy the shares and the company will be forced to shut down. Why? Because a share issue is the main mode of capital generation for a company and when it comes to an IPO, it is the step which a company tries to generate capital to START a company, so if that fails there's simply no money to start the business. To avoid this companies use a method called "Under Writing". Under Writing means prior to an IPO, the company gets a bank to sign a deal with the company to purchase the shares of a company in the event the public refuses to buy the full amount of shares. This deal offers security for the company as-well-as some assurance for the public that if the bank trusts the company we should not worry too. So Under Writing works in those two ways and help IPOs get successful.

SPO

Secondary Public Offering is where a company ALREADY LISTED in the Stock Exchange issues shares to the public. A company could have many number of SPOs in it's life time. All the share issue except for the first and foremost share issue will be falling under the category of a SPO. SPOs generally do not involve very much risk so Under Writing agreements are not of necessity and even if a SPO fails, it will not threaten the existence of the company. Usually a company goes for a SPO to generate additional capital maybe for expansion activities, new researches and developments and activities like that. So that's about the two main methods a company gets enlisted in the stock exchange.