Free Online Stock Market Training Course

Introduction To The Stock Market

” As far as I am concerned, the stock market doesn't exist. It is only there as a reference to see if anybody is offering to do anything foolish ”

Warren Buffett - Great Value Investor

The Stock Market is a conceptual market area where ‘pieces’ of companies are bought and sold by institutions, companies and private investors.

When you request a stock purchase/sell, it goes through the market. Today this is largely electronic, however, there are traders on ‘trading floors’ negotiating prices on your behalf, such as the Chicago Mercantile Exchange.

Today you can purchase more than shares, an endless list of derivatives and instruments have been introduced. To name a few: Equity Shares, CFDs, FOREX, Commodities, Futures, Spread Betting, Options, Calls, Puts.

Transactions are done electronically, by telephone or in person as a floor trader. It is unlikely you will become a floor trader. You therefore need a broker.

Brokers are companies who buy/sell the stocks directly on your behalf, brokers act as a intermediary between clients and market makers and charge a fee commonly known as commission.

You can buy and sell as frequently as you need to, there is no restriction at all on the frequency. As most transactions are electronic these go through instantly.

The main players in the stock market are Private Individuals, Fund Managers, Institutional Investors, Private Companies.

As with any market the stock market has specific times for trading.

UK Markets - 08:00 – 16:30 GMT
US Markets - 14:30 – 21:00 GMT
Foreign Exchange - 24 Hours

That concludes Part 1 Of the Introduction To The Stock Market Section, Please go to Part 2 for the Remainder of the section.