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How to buy and sell stocks

 

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The shares of the important sources of financing ; Many companies are interested in covering their financing needs by relying on stocks, and the financial markets in the Arab world have recently witnessed an important activity in this field. Which led to an increase in the growth of trading volume, which indicates the interest of investors and establishments in this type of financial financing,  and shares are defined as a type of property rights that form part of the profits and assets of a business. [2] Another definition of shares is the group of financial shares offered by the partners in establishing the company , and these shares contribute to the formation of the capital , whether they are in-kind or cash shares. 

How to buy and sell stocks 


The stock market is one of the markets available to all individuals. in order to carry out stock operations; Where these operations contribute to achieving financial profits; Therefore, novice and new investors should be careful while dealing with stocks, and the following is a set of things that must be implemented to start buying and selling shares: 

  • Choosing the nature of the control to be applied to personal equity transactions ; A group of investors prefer to leave the decisions about trading their shares to other people, but another group may prefer to carry out these transactions on their own.
  • Determining the amount of capital that will be used in financial operations in the stock market , and the percentage of risks that can be incurred.
  • Choosing a broker who will provide assistance in trading the investor’s money, and will also be interested in analyzing the stock market, and usually financial brokers get all the means that ensure their control over the investors’ investment portfolios; This contributes to completing the application form to participate in the stock market.
  • After obtaining approval of the request to invest money in the stock market, the holder of the financial account or investment portfolio must provide sufficient financial funding to start trading in stocks.
  • Buying and selling shares , including the following:
  • Determining a specific limit for the purchase of one share, at which the investor is ready to pay the value of the shares, and this contributes to ensuring the volatile conditions in the market, and caution must be taken when determining this price, as it is possible that the delay in determining it will help the investor obtain the price he wants.
  • determining the purchase of shares in the market; It is the investor's purchase of shares without paying attention to the nature of the prices specified when executing the purchase.
  • stop buying; It helps in determining the operating share price; Where investors use orders to stop buying when reaching the state of the downtrend; The stock is moving in a different direction from its previous levels. 
  • Selling shares and depends on the previous points used in determining and stopping the purchase of shares, and the selling price of shares must not be less than what the investor wants, but he does not provide any guarantees related to the demand for shares; Which may lead to selling the stock at a price lower than what the investor wants; Because of the volatile conditions in the stock market.

Stock types 


Shareshave a range of types, and they are distributed according to various criteria: 

  • Shares according to the share of shareholders , and are divided into three types:

  • Cash Shares: They are shares that become owned by investors after they have paid for them in cash, and they represent financial shares invested in the capital of public joint stock companies .
  • In-kind shares: They are shares that represent shares of an in-kind nature within the capital of companies, and are similar to cash shares in the financial rules. 
  • Incorporation shares: They are a right within the profits achieved through companies and have no nominal value. 
  • They are given in exchange for a government concession, and they are traded in the stock market on the basis that they are from the profits of companies.

  • Shares according to the shape, and are divided into the following types:

  • Nominal Shares: These are the shares that bear the names of their owners, and contribute to proving their ownership in the company records.
  • Bearer shares: They are shares that do not bear the names of their owners, but rather indicate that the share is bearer (owner) who is considered its owner by companies, and his possession is an indication of his ownership of the share. 
  • Order shares: They are shares that contain the word “order” and are similar in their trading with the bonds used for the order condition; By relying on a method of trading called endorsement.

  • Shares according to the rights of their owners, and are divided into two types:

  • Nominal Shares: These are the shares that bear the names of their owners, and contribute to proving their ownership in the company records. 
  • Bearer shares: They are shares that do not bear the names of their owners, but rather indicate that the share is bearer (owner) who is considered its owner by companies, and his possession is an indication of his ownership of the share. Order shares: They are shares that contain the word “order” and are similar in their trading with the bonds used for the order condition; By relying on a method of trading called endorsement.

  • Shares according to the rights of their owners, and are divided into two types:

  • Ordinary shares : They are shares of equal value and give investors equal rights without any other privileges. 
  • Preferred shares: They are shares that give their owners priorities in obtaining profits, and recovering the value of their payments from the company’s capital upon its liquidation. It also provides many other advantages to its owners, and is not available in ordinary shares.

  • Shares, according to depreciation and lack thereof, are divided into two types:

  • Capital shares: These are the shares offered by the shareholders of the company, and they do not return to them except upon the liquidation of the company. 
  • Enjoyment Shares: These are the shares that the shareholders obtain after consuming their shares; Which are the shares with amortized value.

Shares according to value, and are divided into four types: 

  • Nominal value: It is the value of the share appearing in the instrument, and the nominal values ​​of the shares constitute the capital of the companies. 
  • Issue value: is the value at which the shares are issued; Therefore, it is permissible to issue any share with a value less than its nominal value, whether when raising the value of the capital or establishing companies. 
  • The real value: is the share owed for each share in the companies' funds after deducting their obligations and debts. 
  • Market value: It is a value determined within the stock market, and is subject to various fluctuations that include rise and fall according to many factors, such as the soundness of the company's financial position .

  • Shares, according to trading, are divided into two types: 

  • Guarantee shares: These are non-tradable shares offered by a member of the company’s board of directors; in order to ensure its management. 
  • Trading shares: are all shares except for security shares; It is possible to trade shares by buying and selling them according to the systems used in trading.

stock properties 


Featuring shares many of the characteristics of the most important: 

  • They are considered instruments of equal value, and this thing gives each share the same rights as if they were ordinary shares.
  • It is not permissible for one share to have more than one owner before the company ; Even if the share becomes the joint property of a group of heirs; However, this ownership, despite its validity, does not apply to companies. Rather, the share must represent only one person.
  • accept commercial trading when they are nominal shares; By transferring its records in the company’s shareholders’ records, but in the case of bearer shares; The owner of it relinquishes it depending on its physical delivery.

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