Share trading is not only the best known form of trading, but also the most popular. All you need to do is choose the firm on the stock market that you want to invest in via a brokerage company, purchase the given number of shares and wait to see how they appreciate.
how it works
There are several types of shares and several classes. The most basic are ordinary shares – these are regular shares that are a common part of transactions on the stock market. Then there are preferred shares, which allow the preferential pay out of dividends and share in the liquidation balance. There are also staffshares, which businesses issue to their employees as a motivational device.
Shares can only come in two forms – certificated, physical shares which exist as a security, or book-entry shares, which are kept in a securities register – and modern electronic trade is conducted in them.
There are also so-called bearer shares, which are not linked to a specific person, and whoever holds them can exercise the rights associated with them. A counterbalance to them are the currently most popular registered shares, which are associated with a specific, registered shareholder, and they may only be transferred by means of an endorsement and, in some cases, with the consent of the joint-stock company.
The stock market is significantly safer than other markets with a speculative basis. According to statistics, shares earn their owners an average of around seven percent per year.
- Personal trading assistant:
The highly qualified team of IMTTrade trading assistants offers you support 24 hours a day, 5 days a week. Moreover, you have the opportunity to contact the IMTTrade assistant in your native tongue.
- Pay out of dividends:
By owning shares you acquire a right to the pay out of dividends, i.e. to a share of a joint-stock company’s profits. You can share in the profits of any joint-stock company.
- No fees:
Trade in shares with IMTTrade is completely free of charge.
- Zero taxation:
In the case of a yield from a rate movement, and when stock is held for more than 6 months, the investor is freed of a tax liability on his profits.
As soon as you become a shareholder, you have a right to the payment of dividends. The only risk is that no one knows exactly in advance if the company will make a profit and so be able to pay out dividends. If it makes a loss, it won’t pay out any money to shareholders.
The second way to make money on shares is through purchase and profitable sale, because their prices are continually moving up and down. Anyone with a large sum of money available can buy shares in various companies, and then at the right moment sell them at a profit thanks to capital appreciation.
Types of shares according to development of price:
- growth shares – have excellent yield possibilities, assumption of long-term stable growth
- defensive shares– during a market drop, they display better results than the market (manufacturers of basic goods) 3)
- cyclical shares– during a market rise have better yields than the market, and during a general market drop they have worse yields than the market (shares in construction companies)
- speculative shares– probable low yields/losses, unlikely high yields (company involved in oil deposit exploration)
- Blue chip shares – shares in blue chip companies, expensive-low yield- trustworthy, LR profit
*These data are only illustrative example.
*Leverage is estimated and depends on the real-time value of the instrument.
**Once you open and/or close position, you will pay spread, which is the difference between current Bid and Ask price. Due to market fluctuations the spread might vary. IMTTrade.com does not receive commission, incentives, fee reductions or rebates from any clearing firm.
Trading hours vary depending on the Exchange of your instrument of choice.
IMTTrade reserves the right, at its absolute discretion, to widen spreads, decrease leverage, control maximum order amounts and limit clients’ total exposure. IMTTrade reserves the right from time to time to increase margin requirements for Share CFDs prior to company announcements or where market conditions require such increases. Clients’ open positions may be subject to forced liquidation and the client may suffer significant loss in the case of failure to fulfill such requirements on time.