Trading is the  Fastest Growing Business It Is the buying and selling of securities, such as stocks, bonds, currencies and commodities, as opposed to investing, which suggests a buy-and-hold strategy. Trading success depends on a trader's ability to be profitable over time.

Trading Businesses

Trading businesses, also known as merchandising businesses, are those that sell tangible merchandise. That means you can purchase goods such as socks, potato chips, or books and magazines from these vendors. What other characteristics do trading businesses have? Consider these:

  • Trading businesses receive payment from customers for merchandise purchased.
  • Trading businesses buy and manage inventory, such as products placed on store shelves.
  • Trading businesses sell a variety of products, accounting for sales through a cash register or        point-of-sale system.
  • Trading businesses may have back stock or excess inventory in a warehouse or stockroom.
  • Trading businesses earn revenue and profits from the merchandise they sell.

Trading businesses may include two different types of sellers, including retailers, who sell inventory to the general public, and wholesalers, who sell merchandise to other businesses at a reduced rate. In turn, that business, typically a retailer, makes those goods available to the public.