Day Trading

Economics however, defines market as aggregate of sellers and potential buyers of a specific item or certain service and transaction that takes place between buyer and seller. It means there are three main components to form a complete market body. Those are sellers of the item or service, buyer of the item or service and transaction that take place between these two parties. Such transactions usually involve exchange of a particular item in return of money, or other item / wealth. However, sometimes term market is used strictly to refer exchanges or organizations that work in order to facilitate trading of financial securities or financial commodities. Various stock exchanges and commodity exchanges are great examples of such organizations. These organizations can either be physical or electronic systems. Examples of physical locations are NYSE, BSE and NSE. They can also be electronic systems without any physical existence and NASDAQ is the greatest available example for demonstrating such system. Most of the trading related to stocks and bonds usually take place at exchange. However, corporate actions such as merger and spinoff take place outside or without a stock exchange. Moreover, if one company decided to sell their stock to other one with their agreement, there will be no requirement for stock exchange in such initial transaction.