How are Stock Market Transactions Made?
The stock market is a market where stocks, bonds, commodities, currencies and other financial assets are bought and sold. Investors who want to trade in the stock market must first choose a brokerage house and open an investment account with that institution. Brokerage houses are institutions that provide investors access to the stock market and carry out their transactions. When choosing an intermediary institution, it is necessary to pay attention to criteria such as being licensed, commission rates, service quality and technological infrastructure.
After opening an investment account, investors should examine the assets traded on the exchange and determine an investment strategy that suits them. It is important to use fundamental analysis and technical analysis methods when trading in the stock market. Fundamental analysis examines the economic, political and social factors that affect the prices of assets, while technical analysis attempts to predict future trends using charts and indicators based on historical data of price movements.
In order to trade in the stock market, investors give buy or sell orders to their intermediary institutions. Orders can be market orders or limit orders. A market order is an order to buy or sell an asset at the current market price. A limit order is an order that allows buying or selling an asset if it reaches a certain price. Orders are transmitted to the stock exchange and the transaction takes place when a match is achieved.
The advantages of trading on the stock exchange include high return potential, diversification opportunities, tax advantages and the right to become a partner in companies. The disadvantages of trading in the stock market include high risk, market fluctuations, danger of manipulation and lack of information. To be successful in the stock market, investors need to follow the market well, be patient and disciplined, control their emotions and learn constantly.