When buyers and sellers meet to exchange shares of a company, then they do it at the stock exchange. Stock exchanges are virtual or physical market places which offer standardized procedures for stock trading. This is of benefit for both parties, buyers and sellers, because only an efficient and liquid stock market is a secure place to trade shares.
Stock Options
Stock options are a great way to leverage investment capital for speculation and to reduce the risk for existing stock positions in your portfolio or even to earn an extra riskless income.
Stock Quotes
Stock quotes are always in flux. The price of a stock is changing because it underlies the laws of supply and demand. Imagine that the price of a stock on the stock exchange always reflects the value of the underlying company in the far or near future and not the current value, then you will understand that the stock price has to change in the present all time. People’s belief about the company’s future value drives the stock pricing.
Penny Stocks
Penny stocks are usually not listed at the major stock exchanges like the New York Stock Exchange (NYSE) or the NASDAQ because they don’t meet the listing requirements. Listed stocks must have a minimum number of shareholders, minimum assets and file financial reports regularly. They are also under the strong supervision of the SEC, the Securities and Exchange Commission.
Discount Stock Brokers
There are different types of online discount stock brokers and also full service stock brokers. Discount brokers offer very limited services with no personal attention, usually just fast order execution at minimal costs. Don’t expect too much help or assistance from them because you pay for the execution only.