What Exactly is Stock?
In the world of finance, stock is an expression of the capital funds that have been raised by a company or corporation. Furthermore, it is what makes up the shares of the company or corporation that can be traded on the stock market exchange. A person or group that holds a share of stocks is considered to be a shareholder. It is important to note that shares often split. Therefore, a shareholder might actually only hold part of a share in stock. The overall worth of a company is decided by the value of its shares and, hence, the stock that the shares hold. Because the market changes every day, the value of stock changes every day. Depending on the market and the type of the stock, its value may change dramatically on a daily basis, or only fluctuate slightly. Although there are stock markets all over the world, it is important to know that the words “stock” and “share” are used to define different things. The differing definitions are very important for international business people, a
