Stock brokers, as recognized participants in a stock exchange, facilitate the buying and selling of shares for investors. They work for brokerage firms or independently, requiring training and experience in the banking industry. Often referred to as trading members, brokers play a crucial role in executing trades on behalf of investors in the stock market.

What is the Stock Market?

The stock market allows exchanges between companies and investors to buy and sell securities like equities, derivatives, and bonds. It includes formal exchanges and over-the-counter markets for listing financial instruments.

Difference between Short-term vs Long-term Investment?

Beginner stock traders often struggle to grasp the concept of investment horizons, referring to the time frame for holding investments. There are two main types: Short-term and Long-term. The key difference lies in the duration of holding investments.

• Short-term investments offer the advantage of quick profits within 3-4 months. Investors can capitalize on a bull market without committing funds for an extended period. By selling securities at a profit, individuals can enjoy the financial gains without having to wait long in the stock market.
• Long-term investment, or value investing, involves holding securities for several years to minimize stock market risks and increase profit potential. This strategy provides the best value to investors by allowing holdings to grow over time, resulting in better profits.
• For beginners, the ideal investment type depends on their goals. Short-term investments are suitable for quick profits and high-risk tolerance, while long-term investments are better for holding onto the money for a while.