ANSWERS: 1
  • Internet trading is the term used to describe the buying and selling of financial products, such as stocks, over the Internet. It is a common way in which such products are currently bought and sold.

    Purpose

    The primary purpose of Internet trading is to provide a convenient way for investors to manage their portfolios online. This includes the buying and selling of stocks on world stock markets and also other financial products.

    Features

    One of the features of Internet trading is the ability to monitor stock market activity from a personal computer. Once the price of a stock is appropriate to buy or sell, then an investor can do so as a common feature of an online trading account.

    Benefits

    Internet trading provides the benefits of convenience and analysis. It is a highly efficient way to manage a stock portfolio and also watch changes in a stock market.

    Effects

    Due to so many people having such quick access to stock market changes, it can lead to more impulsive market reactions as investors often buy and sell without professional advice.

    Considerations

    Internet trading can be like gambling for some people, so it is wise to consider if a more traditional way is better for your income and investments.

    Source:

    SEC: The Internet and Online Trading

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