How to buy stocks correctly?

January 30, 2023

6 2 minutes read

The stock market is known to be divided into several markets, such as a global equity market and a domestic equity market, Regardless of whether the investor is from Saudi Arabia or Kuwait There are always those looking to buy shares on the world’s stock exchanges, There are also those looking for ways to buy shares in local exchanges. And a lot of people may not know How to buy stocks correctly, which we will share with you in this article.

Difference between equity markets in general

When we talk about how to buy stocks we should start by understanding the difference between markets in general, and as we mentioned at the beginning, there are local exchanges and global exchanges in which companies’ stocks are floated.

Local exchanges are usually such as the Saudi Arabian Stock Exchange, or the Kuwait Stock Exchange. Through this, the shares of local companies are put up for trading and IPOs. But on these exchanges, you can’t invest in global companies like buying Apple shares. Or invest in Amazon stock, so the investor is heading to start trading and investing in global exchanges.

Global exchanges may vary by country or geographical area where they are located. For example, there are American exchanges, European exchanges.. and East Asian exchanges and they are one of the most popular online exchanges.

Global and large companies work by listing their shares to trade through these exchanges, thus injecting sums of money from subscribers for the benefit of these companies. Typically, global exchanges are larger than domestic exchanges in terms of liquidity and the size of opportunities. This is the main difference between these exchanges.

Online trading companies have helped reduce distances between investors and exchanges as it has become easier to enter global financial markets than in the past. As such, trading with these exchanges can be started by licensed and trusted trading companies.