1. Introduction to Share Market Trading
With the modern-day technological advancement, the stock exchange and trading facility is totally computerized.
The central depository of shares also introduces to avoid the innovative problems in trading shares. Due to the introduction of computers in browsing the Internet, most of the investors are made share trading as an easy job.
With the service available on the net, investors can browse the site and they can see the present share price. They can also carry out the above process at any convenient place. It is observed from the sequence that certain rules govern the buying and selling of shares.
The overwhelming acceptance of a system in real-time environment such as the stock exchange commands detailed study about its characteristics. This is to enable search scientific rules and guidelines for the investors. Since the investors are expected to be rational, there is a vast need for such a study.
Trading shares in the market is common not only among large players or stakeholders but also among common investors.
Any person can buy or sell his/her shares at the agreed price prevailing in the market. The process of buying and selling is called trading. The place where trading takes place acts as a part of the system called the stock exchange.
In the beginning, the stock exchange is a physical place for buying and selling shares and commodities. Dealers and brokers only allow trading in the place by getting membership. They used to charge a certain percentage of share price as a service charge.
The investor who is willing to buy shares has to move to the stock exchange. Then he must make a call or interact with the brokers or dealers. Likewise, a seller also needs to contact brokers or dealers to sell his share. The investor with the above facility only trades his shares.