Main menu


3 Best Methods Of Trading On The Stock Exchange

Trading on the stock exchange, at the beginning it was necessary to clarify the concept of shares and identify them as being a share, and that share is in the form of one share of the institution's automatic capital for both private and public companies, and this share is required to have the ability to trade within the private market Which is represented in various forms and many names such as the stock market or the money market and stocks.

How to buy or sell stocks

It is customary for the capital to be divided in the form of small retail units and that when building a public joint stock company, provided that the retail units are for the same official currency of the country as for example the euro in Europe, the lira in Syria, the riyal in Saudi Arabia and so on of various examples. Thus, dealing with this company becomes better within the financial market.

1- The stock is initially in the form of a title deed so that the owner can prove his entitlement to the company’s one share in order to collect the company’s capital, which usually sells its shares and is represented in the form of a sukuk through what is known as a subscription.
From here it became possible for the public to come from the people to buy these shares through the financial companies or banks that have a good reputation and fame in society and that can provide and facilitate the sale of the ordinary individuals.
2- The subscription doors are closed when the company obtains its capital in full after selling all the shares, but if there is a desire for one of the individuals to buy the shares after completing the sale of all the shares, he becomes obligated to wait for the underwriter to announce that he has a desire to sell his shares Whether the shares are all or part thereof, and here the sale is made through the stock exchange.
As the money market in particular, or what is called the stock exchange, is the one who has the right to sell shares or announces his intentions to sell, and this is according to the price determined by the market and the price is renewed based on the activity and business of the company.
3- The process of buying or selling shares within the money market in many countries of the world is done in a clear and direct way from the seller and the buyer though there are a few countries that do not allow the completion of the sale process except through a natural person, provided that that person is specialized in the sale process And buying inside the financial market or stock exchange.

This person is called the financial broker and the process is done by that broker buying the shares to himself and then selling them to the buyer and he is registered in the financial market.

Stock market for capital investment

If you are looking to increase your money, there are many people with limited incomes looking for any opportunity through which he can get additional income to help him with the accumulated life obligations.

In fact, this is the beginning for most dealers in the stock market, whether in the financial market that is represented in the Kingdom Stock Exchange or any other financial market within any country or even a global market or what is called in the name of Forex which is a trading process for currencies, metals and oil as well.

There is an example that we can use to clarify more, (the Saudi Stock Exchange) and the process of trading shares inside it, which witnessed a wide turnout of individuals and institutions before the end of 2010 and many of them, and even the majority of the value of their financial portfolios does not exceed ten thousand riyals. Below we will explain the reasons behind that talk .