Stock trader

From Wikitia
Jump to navigation Jump to search

A person or corporation that engages in trading equity securities and seeks to make a profit from the acquisition and sale of such securities is known as a stock trader, equity trader, share trader, or stock investor. These terms refer to the same thing. Investors, brokers, agents, hedgers, arbitrageurs, and speculators are all examples of people who trade stocks. It is possible for a stock exchange to facilitate such equity trading in major publicly listed corporations. It is possible to buy and sell stock shares in smaller public firms via over-the-counter (OTC) markets or, in certain cases, through equity crowdfunding platforms.

Traders of stocks have the option of doing business on their own accounts, which is known as proprietary trading, or via an agent who is allowed to purchase and sell securities on the owner's behalf. Trading via an agency often involves working with a stockbroker. Commissions are the primary source of compensation for brokers and agents.

Market makers are employed by major stock exchanges to assist minimise price fluctuation (volatility) by purchasing and selling shares of a given firm both for their own accounts and for the accounts of other customers.