Stocks, stocks, stocks, stocks, stocks!

In which we continue to teach you about the complex concepts of trading in simple terms.

Today we will talk about how trading stocks work and where you can buy them. But if you don't have time, you can just follow the given link and try to figure it out on your own.

A little bit about stocks

Deposit rates fall every year. The currency jumps up and down without any stability. That is why more and more people are investing in securities - stocks and bonds. At the moment it is one of the most reliable investment instruments.

Many companies issue securities to attract investment. Investors buy these securities and thereby invest their funds in the company. Then investors resell among themselves what they bought. All these processes take place in the securities market - the stock exchange.

The higher the demand for a company's shares, the higher the price per share. For example, at the time of publishing this article, one share of Tesla is worth $304, and one share of Apple is worth $163.

But individuals cannot directly participate in trading on such exchanges. For this, there are special brokerage companies. Brokerage companies charge commissions for transactions on their behalf. Usually it is from 0.003% to 1% of the transaction amount.

Thanks to the internet, such accounts can be opened online. All transactions can also be carried out online through special secure applications.

Most stock exchanges operate in T+2 mode. Following the purchase or sale of shares, you will receive shares or profit two business days later.

How to make money on stock trading?

Usually, small investors are not able to influence the work of large companies.

Since the board of top investors includes the largest holders of such shares. Each company issues its own number of shares, and their number can reach millions, tens of millions, and so on.

Their holders receive profit from the purchase of such securities in the form of dividends (when buying shares) or coupons from income (when buying bonds).

The company itself accrues money to the investor as a holder of securities. In addition, you can earn on changes in the value of securities. In other words, “buy cheap, sell expensively”. 

Share prices, stability and the amount of income depend on many factors. The most important are:

1.    The economic situation in the country.

2.    Prospects for the business you have invested in.

3.    The behaviour of internal and external competitors.

In-depth knowledge of the market will help you predict its behaviour and act accordingly when it is most profitable for you.

To do this, you need to choose a reliable and trusted broker - FBS.com.

The advantages include:

1. Full legality – you can request all the necessary licenses and see them yourself.

2. Cent account – trade almost without risks for yourself

3. Low spread – starting from 1 pip.

4. Easy payment processing.

You can also access a database of useful information - and you don't have to pay a cent for it. Should you trust us and use FBS?

Read the reviews, study the site itself and make the best decision for yourself. We wish you good luck with your trading.