What is Share Trading ?

Share trading is the acquisition and selling of company stock – or company stock-related financial instruments – with the expectation of earning a profit. Shares reflect a part of a public company’s capital and constitute its equity or market cap. Trading derivatives on shares provide investors with the incentive to trade shares in the company and conceivably profit from price volatility without possessing the underlying asset. Derivatives have enabled traders to access the market in a more cost-efficient and timely manner. Rising share typically has a price dictated by the supply and demand of the company’s market share depending on its actual or forecasted future results. Many variables, such as business news, profits and broader market occurrences may affect their price.