How To Invest In Stocks

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:23.

A stock, also referred to as a share, is commonly a share of ownership in a corporation. A stock exchange is a market in which securities are bought and sold, and it is an essential component of a developed capital market. It is indispensable for the proper functioning of corporate enterprise. It brings together large amounts of capital necessary for the progress of a country. It is the citadel of capital and the pivot of money markets.

There are two important types of trading on the stock exchange; namely, ready delivery contract and forward delivery contract. Ready delivery contracts, also known as cash trading or cash transactions, are to be settled either on the same date or within a short period that may extend at best up to seven days. Forward delivery contracts are discharged on fixed settlement days. Ready delivery contracts can be made for all securities, whereas forward delivery contracts are confined to those securities which are placed oft the forward list.

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