EQUITY TRADING Equity trading is the process of buying and selling ownership shares in publicly traded companies. These ownership shares are typically in the form of common or preferred stock, and they represent a claim on the company's assets and earnings. Equity trading takes place in financial markets, such as stock exchanges, and it is a key component of the broader financial industry. Here are some important aspects of equity trading: 1. **Stock Exchanges**: Equity trading primarily occurs on stock exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ in the United States. These exchanges provide a platform for buyers and sellers to trade shares of publicly listed companies. 2. **Market Participants**: Equity trading involves various participants, including individual investors, institutional investors (such as mutual funds and pension funds), traders, market makers, and algorithmic trading systems. 3. **Order Types**: Traders can place different types of ord...
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