Before talking about buying and selling shares, we must define the meaning of the term stock, as the stock is not just a piece of paper only, but rather is considered a share or a share in the ownership of a specific company, as well as shares are considered a means of financing, and shares are traded in their own markets called the stock market Financial (stock market), the value of stocks is not fixed and often tends to rise in value over time.
Types of shares
Stocks in kind.Cash stocks,Nominal shares, Bearer shares, Preferred shares, Ordinary shares, Enjoy shares, Share capital.
Shares are equal in value.
The indivisibility of shares.
The shareholder’s liability is determined by the value of the share.
How to buy and sell stocks
The process of buying and selling shares is an individual or an institutional process, and in the last ten years it has spread greatly, and the demand for this process has become very large by all segments of society.
There is a difference between the share and the bond, as the share is considered participation in the ownership of the company issuing the share, while the bond is considered a debt owed to the company in favor of the owner and holder of the bond, and the bond also saves the bearer annual interest, and it is risk-free unlike the share that is not a guarantor for the bearer to throw part of the Company profits.
The places of trading (the stock exchange) and are openly, and others are electronic, and the principle of the stock market is to facilitate the process of exchanging securities. Between sellers and buyers, as well as the elimination of investment risks, this process usually takes place through a person authorized to do so, and he charges a specific commission in exchange for this mediation.
Methods and steps of trading
Opening an investment portfolio with companies licensed to engage in securities business.Fill out the form, buy or sell with the broker.
Determine the type of transaction, buy or sell.
Advantages of trading stocks
The return is better, as trading stocks yields a better and better return than buying a contract and holding it for a while.
Preserving money from damage or theft, if it is stored by regular means.
And to save time and effort on the parties who deal with it, as in most of the deliberations the process is electronic, and from any location where the bond holder is.