Pining Down the Basic Facts of Financial Trading

When it comes to entering the financial trading game, it can seem complex and difficult to understand when first entering if you've had no prior training beforehand. That’s understandable really, as not all of us have had the chance to gain such knowledge, and that’s why we at the Academy of Financial Trading are here; to give you the head start you need to get a leg up in learning how to pay the financial trading game.  This way you won’t be left flying in blind, you won’t be left to make mistakes that with a little help and study you could so easily avoid.

However before coming to the sign up table, before breaking out the book and online resources and knuckling down to engage in some serious study it helps to know the basic facts, so that by the time you get into the proper parts of the study, you’re not left not knowing the very basics you need to know to get a full picture of the world of financial trading. That’s why at the Academy of Financial Trading we thought we’d start with the basics.  That’s why we’ve decided to group together a list of the most basic facts concerning the art of financial trading to help you get started.

-Financial Trading primarily centers around the buying, trading and selling of stocks, either through professional stock markets or through  online services, in individual  business’ and industries in the purpose of coming out  with more money than you came  in with.

- A share of stock amounts to the smallest unit of ownership in a company.  If you own a share of a particular companies stock, you own a part of that company. The larger the shares of stock you own, the larger percentage of the company you own.

-These stocks have been traditionally bought, traded and sold on what is known as the ‘Stock Exchange’, which is a corporate market where companies register to ‘float’ themselves and their shares for investors to buy. The largest and most famous of the stock exchanges are in London, New York, California, Germany, Hong Kong and Japan, although many nations have some form of stock exchange.

-Once you own stocks in a company, hence owning a part of that company, you are afforded voting rights on choosing that companies board of directors, as well as other matters. If the company distributes profits amongst shareholders, you are likely to receive a proportionate amount.

-There are two types of stock, common stock and preferred stock. Common stock is the one you are most likely to trade in as it represents the majority of the stock held by the public. It has voting rights along with shares in dividends. Preferred stock confers fewer rights than common, except in the distribution of dividends.