Shares are one of the most popular assets in financial markets. When you buy a share, you are buying a 'piece of ownership'- of a company. So if you are thinking of trading shares, it is essential to research the company itself and the industry it belongs.

An added benefit of owning shares is receiving dividends. Dividends are paid twice a year, and they show your part of the company's profits. How much you receive is depending on how much the management distributes to shareholders, and how much it reinvests back into the business.

How does the stock market work?

The majority of trading takes place on stock exchanges like the New York Exchange or London Stock Exchange, which makes it easy for different parties to buy and sell between one another. Today, online trading has powerfully come to the stage, and it makes possible the communication of the provider and the client through a trading platform.

What moves stock markets?

Like any other asset, the most crucial driver of share price volatility is supply and demand.

Share supply

The number of shares available in any company is limited- although it may decide to release more or buy some back to cut off the supply on the market. With simple logic, if a company releases more stock and the demand does not rise to match the increased supply, its share price will go down. Meanwhile, a buyback without a corresponding drop in demand will lead to an increase in a company's share price.

Share demand

While a company usually has full control over the supply of its shares on the market, demand can fluctuate due to a wide range of reasons. There are three most important: earnings reports, external factors, and sentiment.

Earnings reports

Most of the stock exchanges ask the companies which are listed in their lists to release reports showing their financial performance once every quarter, with a full report once a year. Traders and investors refer to these report's details when they are making the fundamental analysis before deciding where to make their investments.

The 10 Most Valuable Tech Companies in the World

The world’s 10 biggest tech companies have a combined valuation over $5.7 trillion.

A few years ago, you were able to find the 10 most valuable tech companies in the world in the US, all of them. All nestled up next to each other in 50-square-mile area in California called Silicon Valley. But, nowadays it is not the same. In 2019 4 Eastern companies were part of the top 10. Here you find the 10 topmost valuable tech companies by the market capitalization.

10. Intel Corp. (INTC): $206 billion

9. Taiwan Semiconductor Manufacturing Company (TSM): $214 billion

8. Samsung Electronics (SSNLF): $243 billion

7. Tencent Holdings (TCEHY): $400 billion

6. Alibaba Group Holding (BABA): $449 billion

5. Facebook (FB): $525 billion

4. Alphabet (GOOGL, GOOG): $818 billion

3. (AMZN): $888 billion

2. Apple (AAPL): $931 billion

1. Microsoft Corp. (MSFT): $1.04 trillion