What Are Some Facts About Sharetrading?


Quick Answer

Sharetrading is the exchange of shares of stock between buyers and sellers. Stock markets and exchanges are facilitated via physical market locations, online trading platforms, and over-the-phone exchanges, as explained by Investopedia. Shares of stock are available at a wide range of price points, but there is always risk associated with these investments.

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Full Answer

When trading shares, individuals are actually exchanging small pieces of ownership in a specific company. As the company grows, the value of the investment in its shares increases as well, according to CNN Money. This makes it possible to profit through share trading; however, individuals also bear the risk of losing money if the company does not perform well. Individuals that are new to trading should cautiously consider the allocation of their funds and avoid taking huge risks until they are more familiar with the stock market, notes Stock Trader.

The three largest stock exchanges in the United States are the New York Stock Exchange, the American Stock Exchange, and the NASDAQ, as reported by Trade Education. Those interested in trading stocks can also utilize an online trading platform that offers broker services to match buyers and sellers from a wide range of stock exchanges. Online trading platforms may charge commissions or fees and have specific account restrictions, according to Nerd Wallet.

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