Types of Participants in the Stock Market Trading
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There are some regular participants in online stock market trading. Investment banks handle most of the transactions in IPOs. An IPO is the first ever sale of shares of stock issued by a publicly traded company to the general public. Prior to an IPO, typically a company is first thought of as a private company with a relatively small number of shareholders.
In recent years, many people have entered the world of share market trading via the internet. Companies issue an IPO or an Initial Public Offer to raise money for starting up or growth of their business. The IPO then sells shares of stock at a pre-determined price. This is a way for companies that haven’t been public to raise money but have capital that is needed for growth.
Short selling is another frequent type of stock market trading technique that has developed through time. Short selling is when …