What is stock trading?

The stocks are usually traded on the auction basis at the exchange. The biggest factor to decide the stock value is the earnings and the performance of the company. The expectation the profit by the company would be rising leads the stock prices to go up, while the expectation be declining leads it to go down. So most investors in the stock market are regarded to aim to find the enterprise whose stock prices seem to rise. If the corporate performance improves better than expected, the investors could get the additional dividend. Moreover, the investors can take more profit as capital gain by selling the stock when it rises higher than the price he obtained. It is, however, necessary to pay attention that the investors in the stock market would lose all the money when the company falls bankruptcy.