In Millennium-FX we want our clients to be versatile when it comes to trading, we hand to them the opportunity to trade in different markets. One of the markets that Millennium-FX eagerly exposes its client to, is the equity market or commonly known as the stock market.
But before you start trading equities, you should first do your assignment and thoroughly research what it is. There are different definitions of equity and its meaning will depend on the context. If you have researched about equities and opened different websites you may have been confused because of the different definitions it provided you with.
To make it simple and easy to understand, equity refers to ownership. In the context of the stock market, equities are stocks. Stocks are shares in a specific company and shares are partial ownership in the company. If you buy stocks then you are also acquiring a part of the company’s ownership, you become a partial owner. For example, you own 300 shares of stock in Apple Inc. that stock represents your equity or your ownership of Apple Inc.
A lot of people invest in equities because of the possibility it can guarantee for high returns. People also invest in equities because of the dividends — payments that shareholders receive from the profits of the company. Companies pay you dividends when you own equities. You must remember that paying dividends is not compulsory but they are wonderful. You can either use it as another investment or take them as profit.
Stocks in the equity market are traded in the stock market or stock exchange. This market is a place where buyers and sellers meet to trade in listed companies. You might have heard of the word NASDAQ, New York Stock Exchange (NYSE), and London Stock Exchange (LSE) these are examples of widely-known stock exchanges in the world.
A stock exchange can either be a virtual gathering or a physical exchange. In physical exchange, traders shout and display hand signals across the floor in order to place trades. In virtual gatherings or electronic trading posts, stocks are traded electronically and often include a broker-dealer company to manage trading in a specific stock. Electronic trading posts are becoming more common and are the preferred method of trading over physical exchanges.
In modern technologies with just a click of a mouse or a tap of a finger using your mobile phone, you can buy or sell stocks. The only thing you need to do to is choosing a broker and start trading by opening an online trading account. Always remember that firms which offer trading equities must specialize in in-depth market research, trading expertise, unique trading systems, and have direct access to the trading floor for better executions.