Share Trading Assignment Essay Example | Topics and Well Written Essays - 2000 words - 1

Share Trading Assignment - Essay Example For the theoretical analysis, the LSE provided all the performance charts for all the companies highlighted and presented in this paper. For the fundamental analysis, the LSE provided all the data in terms of income statements, profit and loss accounts, as well as balance sheets for all the companies stated and highlighted in this paper. A common trend in the investment market in the UK has shown that the trading of securities has been increasing in recent years. The London stock market (LSM) has been in existence for the last 300 years. Many people believe that the LSM holds the ideology where the rich get richer by owning percentages of firms in the financial market. However, due to the introduction of pro trading skills, the LSE has changed its identity allowing an open avenue for any suitable investor to play a vital role in the investment and financial market. The mechanisms of trading in the stock market have been complicated for these investors, a phenomenon that has increased the risks of investment. However, the study of the theoretical and fundamental analysis makes the comprehension of the securities trading mechanism easier to absorb. In this paper, these two phenomena have been identified and explained comprehensively and a comparison analysis has been made to further explain how trades can be made in the London stock market. A case study has also been outlined to determine the two analyses by using 100,000 pounds in the UK local trading floor. A stock is a portion in the proprietorship of a company. Stocks characterize a privilege on the companys properties and earnings. As an individual acquires more stock, their proprietorship stake in the establishment becomes larger. It should be taken to account that the terms stock shares or equity represent the same thing. Most stocks are transacted on exchanges, which are dwellings where customers and vendors set and decide on a price. During the previous few years, the typical persons concern in the