What Are Stocks?

The reason is that at some point every company needs to raise money. The company may need a cash injection to expand or to acquire new properties. To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock .Each stock issue is limited to a certain number of shares, and when they are issued they are given a par value. The market quickly adjusts that par value according the perceived health of the company and its potential for growth

The Definition of a Stock
Stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership in the company becomes greater and if you can acquire more than 50% stocks of a company then you can be the owner of the company .Whether you say shares, equity, or stock, it all means the same thing.


This is a category of investment for increasing wealth. When you start on your road to a wealthier life, you need to have a solid understanding of stocks and how they trade on the stock market. Over the last few years in India, the average person's interest in the stock market has grown exponentially. This demand with advances in trading technology like online trading, demat accounts has opened up the markets so that nowadays nearly anybody can own and trade stocks with out any difficulties.

Despite their popularity most people don't fully understand stocks. Much is learned from conversations during the travel or in tea shop with others who also don't know what they're talking about. Chances are you've already heard people say things like “STOCK MAKETS CRASHED TODAY”.”SENSEX AT RECORD HIGH”. Many investors could have avoided trouble and losses, if they had remembered this that it is your hard earned money. Asking questions is the first step to information gathering. You should be a smart investor who wants to know more about the risks and rewards before investing. Stocks are the answer to instant wealth with certain risk. Stocks can do create massive amounts of wealth, but they aren't without risks. The only solution to this is to know more about stocks and understand where you are putting your money. Let us start by explaining what a stock is and the different types of stock, and then about how they are traded, what causes prices to change, how you buy stocks and much more.

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