Stock trading refers to the buying and selling of shares or stocks in publicly traded companies. It allows individuals and institutions to participate in the ownership and potential profits of these companies.

Stock trading works through exchanges where buyers and sellers come together to trade stocks. Investors can place orders to buy or sell stocks, and these orders are matched to execute trades. The price of a stock is determined by supply and demand factors in the market.

There are several types of stock trading, including day trading, swing trading, and long-term investing. Day trading involves buying and selling stocks within the same day, while swing trading involves holding stocks for a few days to weeks. Long-term investing is about holding stocks for an extended period, usually years.

Stock prices are influenced by various factors, including company performance, economic conditions, industry trends, investor sentiment, and geopolitical events. Positive news or earnings reports can increase demand and drive up stock prices, while negative news or economic downturns can lead to a decrease in stock prices.

Stock trading carries risks, including the potential for financial loss. Stock prices can be volatile and unpredictable, and investors may lose money if they make poor investment decisions or if the market experiences a downturn. It’s important for individuals to do thorough research, manage their risks, and diversify their portfolios.