Forex Vs Stock

Forex Vs Stock

Forex (Foreign exchange market) is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree.A stock market, or (equity market), is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.Stocks are usually arbitrary pieces of a company that the board of directors issues to the public so that ownership of the company is distributed among everyone with a piece of stock.The performance of a company’s stock is directly related to the performance of that company greater profits generated by the company translate into higher stock prices. Stocks can be sold off to make a profit or held for future gains.