What is ‘part’? If you want to invest money in the stock market or just want to understand it, the first step is to understand the ‘share’. The stock is the smallest part of any business you get an interest in that business after purchase. It also gives you a share in the profit and losses of the business. The company needs funds to raise business, install new machines or repay debt. These funds collect by issuing the company shares. Let’s understand it with an example: Suppose a business needs 1 lakh calls. The company will issue shares to increase it. Suppose the company issued 1000 shares of Rs 100. You have bought 10 shares, that is, you have bought a total shares of Rs 1000. This means that you now also own 1% of the company. You can benefit from the share in two ways: from dividend and by increasing the share price. Dividend is the part of the profits that divide the company into a shareholder. If you sold a shares of Rs 100 for Rs 150 later, it is the advantage to increase the price of the share. Those who invest money for a short time often deserve that way. Stocks are purchased in stock exchange. India’s two most important stock exchanges are BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). Putting money in the stock can make a profit, but there is also a risk. The share price varies daily. The company can suffer losses at any time and sometimes the price drops as a result of the news. Therefore, after doing research and analysis in the stock market, money must be spent wisely. Click here Life & Style Click for more stories Click here
What is share?
