Stocks: What are Stocks or Shares?

 

 

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What are Stocks/Shares? 

Why do I buy Stocks?

Where do I buy Stocks?

How do I claim a Stock?

Why do companies issue shares?

What are types of stocks?

How are the stock prices decided?

What are BULLS and BEARS?

Why do stock prices change?

Who are the share brokers?

Risks of Shares

 Virtual Stock Market Game

Some myths: Fear on investing in stock markets

Real Stock Exchanges in India

Sensex: A brief Intro

 

Stocks, shares, equity – the same thing. 

In layman term – stock/share/equity represent ownership in a company.

 If I own a stock in a company, I am one of the owners as I am investing some money in the company. The more I buy stocks, the more is my ownership. I then own a part of the assets or properties and the profits of the company. 

But, owning a TATA share does not mean I can go to TATA office and pick up a chair for my home just because I seem to like the colour and design of the chair! 

It’s a different kind of ownership; if the company flops and goes bankrupt, then after paying out all the debt, I can get a part of the money from the sale of the assets.

But there are risks too. We have discussed about the risks in Risks of Shares.