When purchasing a stock through your broker, you are in fact buying a tiny portion of that company. The share price is determined strictly by supply and demand, or in other words by the general consensus in the market on the value of the stock in question. Both actual performance of the company, as well as expectations to its future performance, are reflected in the current price.
It is, of course, the frequent movement in share price that make them attractive for investing. Additionally, a lot of listed companies pay dividends to their stockholders. At Finsa Markets, although you will be spread trading and not buying stocks directly, you will still get dividends credited to your account. Conversely, you will pay the dividend if you are short the stock. However, 10% of the amount is withheld for tax reasons.
At Finsa Markets we give you the opportunity to trade a wide range of European and American stocks plus a few more at some of the lowest prices in the industry.
If you have got any questions or need help getting started, please don’t hesitate to call or email us.
There is always risk involved in trading stocks. In the past, there have been numerous incidents of stocks losing a big part of their value in a short space of time, or even going to zero because of sudden bankruptcy.