Stock Exchange is a place where anyone with money in his pockets can trade for shares. The Basic way of trading on the stock exchange is to open an account with a broker who has a ticket to trade on behalf of her customers on stock exchange. You can open your account with the broker either by submitting the required amount of money or shares or stocks whatever you call it. Every broker has different requirements for opening an account with different requirements for amounts of money that can be deposited into the account.
Broker trade on behalf of you by taking your orders mostly on phone for any stock you want to trade and in return charges a certain amount of commission. There are two different kinds of brokers. One who simply trade on behalf of you and others are called dealers which are also called market makers. a market maker is a person who at the end of day matches cost at which you purchased your shares and their day end prices. if day end prices are higher than the cost at which you purchased your shares, he will issue a margin call for depositing the necessary funds to level your funds with the price of your shares.
Broker trade on behalf of you by taking your orders mostly on phone for any stock you want to trade and in return charges a certain amount of commission. There are two different kinds of brokers. One who simply trade on behalf of you and others are called dealers which are also called market makers. a market maker is a person who at the end of day matches cost at which you purchased your shares and their day end prices. if day end prices are higher than the cost at which you purchased your shares, he will issue a margin call for depositing the necessary funds to level your funds with the price of your shares.
