trading stock

A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, stockbroker. Such equity trading in large publicly traded companies may be through one of the major stock exchanges, such as the New York Stock Exchange or the London Stock Exchange, which serve as managed auctions for stock trades. Stock shares in smaller public companies are bought and sold in over-the-counter (OTC) markets.
Equity trading can be performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the share's owner. Proprietary trading is buying and selling for the trader's own profit or loss. In this case, the principal is the owner of the shares. Agency trading is buying and selling by an agent, usually a stockbroker, on behalf of a client. Agents are paid a commission for performing the trade.
Major stock exchanges have market makers who help limit price variation (volatility) by buying and selling a particular company's shares on their own behalf and also on behalf of other clients.

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  1. CountryGent

    Cigarettes as trading stock?

    I don't personally smoke cigarettes, having given up the habit over twenty years ago. My wife never has, to the best of my recollection. (I do enjoy the occasional fine cigar, but that is another matter.) A fictional work I am currently reading reminded me of how the product is used as a form...
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