What is Stock? Why company issue stocks?

Stock or share shows your ownership stake in a corporation. If a company issue 1000 shares of stock then each individual share represents 1/1000 of that company.

Imagine you want to start your company or store. You decide you need 100000 Rs to establish your business. You divide company into 1000 piece or share of stock your price of each new share is 100 Rs. If you can sell the entire share you should have 1000*100 Rs means 100000 Rs which is the amount you required to establish company. Means a company raises their capital by issuing stocks and entitled stock owner or share holder to partial ownership of corporation.

 Simply if you are a stock holder it represents your claim on the company assets and earnings. Stock, share, equity are same thing.

What is Stock Market?

Hello Friends, Good Afternoon this is my first post on this blog. The aim of this blog is to educate traders and investor who want to start or started investing and trading in Indian share market. We discuss basic terms, news, updates and many things which are related to and affect stock market and capital market.

 To start firstly we have to know what stock market is.

In general terms a stock market is place where
stocks or shares of company are bought and sold, through stock exchange. In broad sense stock market is primarily a virtual exchange of securities and derivatives. Stock market lists the securities or shares of publicly traded companies. In next session we discuss what stock is and why companies issue stock?

Thank you