1 Introduction

This book is a quick reference for trading as well as useful indicators. For extended details, visit investopedia.

Any given company can chose to become publicly traded by creating an IPO.

Initial Public Offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. In turn, any person can buy and sell the given stocks.

Once public, a company can be traded (buy or sell its stocks) in a stock exchange or stock market, which is a physical or digital place where investors can buy and sell stock.

The price of each share of the given company is driven by supply (how many stocks are available for sale) and demand (how many stocks people want to buy).

Let’s review that again: the price of a stock is determined by the supply and demand.

If the supply of an stock is high (that means there is an over-offer of stocks), the price would expect to go down.

If the demand of an stock is high (that means there is short-supply of stocks), the price would expect to go up.