What are Stocks

 Overview

Company stocks are probably the most well known financial instruments in the world. When you buy a stock, you are purchasing a given number of a company’s shares that represent ownership of a corporation. Every incorporated company has stock, but only those that are traded on a public exchange are of interest to investors.

Stock market exchanges are found all over the world, from New York to Copenhagen and Hong Kong. Typically, An American exchanges will trade American companies and a Swiss exchange trade Swiss companies, on the other hand larger companies are often traded on more than one Exchange .Trading takes place on the exchange itself where prices fluctuate according to the laws of supply and demand.

The risk of owning company stock consists of business risk and company risk.

1-Bussiness Risk: the risk related to the prospects for the type of business the company is involved in.

2-Company Risk: the risk related to financial structure of the company.

By creating portfolios consisting of several stocks from different industries it is possible to reduce your overall risk significantly.

In order to trade stocks you need sufficient information about the market, the news, and market trends.

Pal-invest Asset management introduces you to the global markets, which through our experience and advice you can trade its various stocks.