Stock valuation - Wikipedia

Trading dates back from our ancient times. Trading has made us reach where we are- It is exchange of goods and services with each other according to the need and excess. Trading has taken us where we are otherwise we would have been still eating one crop we produced and slept. 

Stocks trading is also a type of trading involving exchange of shares and monetary funds. Stock trading is simple till its definition. There is no more to define it but a deep research has to be done before buying or selling anything. Stock trading earns major profits to strategies and t timings. 

History of stock trading 

Stocks came into existence in Europe with joint stocks companies in Europe. These companies were informal then and were used for a small extent of stock trading. Dutch East India company was the first company to officially make its shares public through the Amsterdam joint exchange. The first stock exchange in Asia was established In Bombay, India, the Bombay stock exchange in 1875. Stocks have come up a long way from 18s to 20s. There are many things which have changed while many are conserved. 

Forms of market –

As stated, the stock trading was earlier informal while then formal. The development of stock at different places led to different kinds of mechanisms of stocks. As of now, there are two forms of the stock trading market – 

  1. Organized market – as the name suggests, this type of market is fully organized by a set of rules and regulations and an authority to confirm. Everyone in the market needs to adhere to the pre decided rules whatever way he/she is trading. There will be an authority to keep a check on these rules. 
  2. Unorganized market – In this type of market, again as name, is contradictory to organized one. These are no rules and regulations to be followed. This type provides its own benefits and cons.

You need to choose the best suitable type of market for you.

Impact of online trading –

Stock trading has backed long years back, but the methods have changed drastically. Now the major stock trading market has shifted to the online mode for it provides more convenience to the traders. Stocks and mutual funds have gained more popularity over time after the introduction of trade in the online market and eventually attracted more traders worldwide. The online market is easy to use as well as provides safety tools. The major fear of the people was to lose money in scams, but online trading has come up as a solution to this and many other problems. Stocks at have changed their face but are the same, future making way.