What are Stocks?

Stocks or shares shows a part of ownership of a company. They are issued to interested parties who are called shareholders. Shareholders receive part of the company’s profits in proportion with the number of shares they have under their name. When the company comes public, anyone is allowed to buy or trade stocks of the company. The only difference is that a trader doesn’t have the right of the vote.

What makes shares different from other assets?

Initial Public Offering IPO stands for initial public offering and it represents the first time the company goes public. Being public allows the company to raise its capital value by attracting public investors to buy or trade its shares. The transition process from private to public leads the company to gain considerable profits from public interest.

> Follow On Public Offer FPO stands for follow-on public offering and it represents the moment the company issues more shares after the time it has gone public. It might be done by the company itself and in this case the total number of stocks available is raised, or when one of the biggest shareholders sell them to other shareholders, and in this case there is no change in the total number of the shares available.

Why trade Indices?

An index is a basket of shares which belongs to the same category, for example tech shares under one group. You as a trader do not need to be the owner of any of the stocks in order to trade an index. Indices are used even as a performance measure. Usually, each developed country has its own index, as France, Germany, Italy, and the United States has many.

Why trading indices is a smart move?

Different Account types available Stop Loss/ Take Profits Functions available Index Benefits Negative Balance Protection