WHAT IS A SHARE OR A STOCK?
The words shares or stocks are often used interchangeably. A share is what one has to own to become a member of a company. When you buy a share in a company you become a member of the company. Being a member or shareholder means that you share in the profit or loss of the company. Companies issue shares. These shares stand for the money which shareholders (who are the members of the company) put down when they first invested in the company. Owners of shares (shareholders) are presumed to own the company. If the company makes a profit, the shareholders have the right to a share of the profit, which is declared for distribution. We call such a slice of the profit a dividend. Shares in listed companies are traded on The NSE on every working day of year.
