ETK_01 STOCK AND SHARE MARKET: Have you ever wondered what stock is or why shares of stock even exist? The stock of a company is sold in units called Shares. A share is unit of ownership in a company or corporation.Stocks are traded at places called exchanges. At these exchanges, traders buy and sell shares of companies. Imagine you wanted to start a business with your friends. You find out that you need ₹10 Lakh to set up the business. You divide your company in 100 pieces or 100 “shares” of stocks and price each share of stock at ₹1000. If you sell all your shares, then you should have the ₹10,00,000 you need. If at the end of first year your company earned ₹50,000 resulting in ₹500 earnings per share (EPS).You could call a meeting of the companys Board of Directors and decide to use the money to pay cash dividends, repurchase stock, or expand the company. If your company is large enough,you could trade on stock exchanges like BSE, NSE, NYSE and NASDAQ. Stocks can give multiple returns on investments that no other asset class can match. If you can invest wisely in the potentially strong stocks, you are all set to gain enormously from your investment. For deeper insight, you may visit this site. #ETK
Posted on: Tue, 23 Dec 2014 14:53:21 +0000
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