by | Feb 8, 2021 | Weekly Tips

What is a Stock Exchange?

Advantages and Disadvantages of an Exchange

The Stock Market & Concepts of Trading

Advantages of  Trading on a Stock Exchange:

  • The cost of trading compared to other investment vehicles is relatively low.
  • The value of a stock/share can be known at any time by accessing the share price through a stock broker or trading platform.
  • With the use of online trading platforms, trading on a stock exchange is simple and easily accessible.
  • Due to high volumes of traders, one has a greater opportunity to sell shares to waiting buyers.
  • With knowledge on trading, trading can offer a higher return of investment than any other type of investment.
  • Profitable companies pay regular dividends to shareholders.
  • Stock Exchanges maintain strict rules and regulations, reducing risk of fraud.
  • Trading requires a smaller capital outlay than an investment like property, making it more accessible to all.
  • A shareholder owns shares in the traded company, with certain rights, but is not held liable or accountable for any losses incurred by the company.
  • Risk can be minimised with trading discipline and a trading strategy.
  • Access to trading funds is a simple process with little delay.
Disadvantages of Trading on a Stock Exchange:
  • While it is always possible to sell a share, you are not guaranteed of the share trading at the price you want to sell it at, as share prices rise and fall.
  • Trading successfully requires knowledge and dedication.
  • Share prices fluctuate and may result in a profit or loss for the trader.

Financial Markets Education - LEARN TO TRADE

 

Have you ever wanted to learn to trade on the Stock Market in real time but did not know how to?

Have you ever wanted to make a great income for yourself on your own merit and in your own time?

If you answered “yes” to these two questions, then this solution is right up your alley…

learn to trade

Financial Markets Education

 

Have you ever wanted to learn to trade on the Stock Market in real time but did not know how to?

Have you ever wanted to make a great income for yourself on your own merit and in your own time?

If you answered “yes” to these three questions, then this solution is right up your alley…

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