New
york Stock Exchange NYSE follows the open out cry method. This method
is usually employed in Stock markets and Commodity exchanges where the
trading is done verbally. The offers and bids are done verbally. NYSE
is a physical Exchange where trading can happen only on the shares
listed there. Orders comes from the members to the specialist who goes
to the floor trading post to trade stock. He will match the buy and
sell offers using the open out cry method.
Nasdaq
in America uses the Virtual market method where the trading is done
with computer networks. It brings world together. Nasdaq is called
virtual listed exchange.
To
learn the basics of the stock market one must learn the trading of the
stock markets. Stock market is a place where company stocks and
derivatives are traded. In order to trade a company stock the stock
must be listed in the stock exchanges. There are many exchanges in the
world. Most important of the stock exchanges are NYSE, NASDAQ,
Euronext, BSE, NSE etc. Once listed the stock exchanges allow its
members to actively trade in stocks. The stock market is controlled by
various factors like government decisions,Economy indicators, Credit
policies etc. Sometimes the Stock market behaves very irrationally.
There are Bulls and Bears who dominate the market. Bulls push the stock
market index up while bears wait for their opportunity to bring it
down. There are people who specialise in short selling, Futures and
options and speculations. To complete your learning of stock market
basics you must learn the following factors.
Hedging
Short selling
Futures and options
Speculation
Long term Investment
Safe Investment
Short time Investment
Risk Factor
Behavior of the stock market.