In the case of day trading, individuals hold stocks for a few minutes or hours. This form of trade involves purchasing and selling stocks in a single day. Primarily, there are five types of share trading. The first exchange for online trading in India and Asia was the Bombay Stock Exchange which was established in 1875.īSE, along with the National Stock Exchange in India are the two main houses where stock market trading takes place. The first joint-stock company to publically trade its shares was the Dutch East India Company who released its shares through the Amsterdam Stock Exchange.Īfter the success of joint-stock companies in fostering economic development along with geographical expansion, those were made a mainstay of the financial world. Informal stock markets started mushrooming in various European cities. Stock trading came into existence with the formation of joint-stock companies in Europe and played an instrumental role in European imperialism. This invention triggered a chain of economic and financial developments such as the introduction of the credit facility, share trading, etc. This inconvenience forged the way for money which acted as a standard against which the values of all products are measured. However, the barter system was found inconvenient given the lack of any basic standard of measure of the value of products. In the past, however, a form of trading which was prevalent across different societies was the barter system where services and goods were traded in exchange for other services and goods. Primarily due to isolated human communities which did not allow the unification into a single system. The form of trading, however, has varied across different societies. Trade has existed for as long as the human civilisation, i.e. With online trading and investing, the process has become much more convenient, where most markets have been simulated on the internet. An unorganised market does not contain any strict rules and regulations, and even if it does, adherence is not mandatory. Organised market is constituted with a set of rules and regulations which every entity operating in the market needs to adhere to and usually consists of a regulatory body to supervise such adherence. There are primarily two forms of the market – organised and unorganised. For instance, a place where stock trading takes place is called the stock market. Depending on the kind of products, the market is defined. A place where any form of trade takes shape is called a market. Trade governs the wheels of progress in any society and allows for wealth creation. It is the basic principle which forms the core of all economic societies and financial activities. Trading is essentially the exchange of goods and services between two entities.
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