The term equity trading refers to the buying and selling of company shares, stock indices and sector CFDs.
Here, shares of big public companies are bought and sold through the
major stock exchanges like London Stock Exchange, New York Stock
Exchange, and Tokyo Stock Exchange. These exchanges serve as managed
auctions for stock trades. But, stock indices in small companies are
bought and sold in OTC (over-the-counter) markets.
Deals can be
performed by the owner of the stocks, or by an agent. There are two
types of trading - Proprietary trading (also called principal trading)
and Agency trading. First one is buying and selling for the trader's
own profit or loss. Here, the principal is the owner of the shares. In
the case of agency trading, an agent (usually a stock broker) buys and
sells stocks, on behalf of a client. Stock brokers are paid a commission
for performing the trade.
View Trading Example click here
This information provided by Orient Financial Brokers (OFB), licensed and regulated by Central Bank of the UAE , to conduct brokerage in Foreign Exchange, Commodities and
Labels: Equity trading, over-the-counter, Stock brokers, Stock Exchange