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Before we look at the world of online trading, let’s take a quick look at the basics of the stock market. If you’ve already read How Stocks and the Stock Market Work, you can go on to the next section. A share of stock is basically a tiny piece of a corporation. Shareholders -- people who buy stock -- are investing in the future of a company for as long as they own their shares. The price of a share varies according to economic conditions, the performance of the company and investors’ attitudes. The first time a company offers its stock for public sale is called an initial public offering (IPO), also known as ’going public.’ When a business makes a profit, it can share that money with its stockholders by issuing a dividend. A business can trade stocks online also save its profit or re-invest it by making improvements to the business or hiring new people. Stocks that issue frequent dividends are income stocks. Stocks in companies that re-invest their profits are growth stocks. Brokers buy and sell stocks through an exchange, charging a commission to do so. A broker is simply a person who is licensed to trade stocks through the exchange. A broker can be on the trading floor or can make trades by phone or electronically. San Luis, Honduras