Stock Market for Beginners -
Before you understand what is the stock market, it is important for you to know what is capital.
Capital is the money put into the business by the owner.
So the amount which is invested in the business by the owner is called capital.
For example, if you start a business by putting Rs.100/- then Rs.100/- is your capital.
What is a joint-stock company or a limited company?
It's important for you to understand this concept also. A joint-stock company is a form of business organisation which has many owners. So a joint-stock company does not have only a single owner. There are quite a few people who come together and do a business and such form of business organisation is called a joint-stock company or a limited company.
Next thing which you need to understand is what is share capital.
Share capital is the capital invested by the owners of the joint-stock company. So the capital of a joint-stock company is called share capital.
What is a share or what are shares?
The capital of the joint-stock company is divided into a lot of small parts and each such part is called a share. For example, if the owners of a joint-stock company come together and invest say Rs.100/- together, then this Rs.100/- may be divided into 10 shares of Rs.10/- each or 100 shares of Rs.1/- each. Let us assume that the capital of a joint-stock company is Rs.100/-. So Rs.100/- is the share capital. Let us also assume that the share capital has been divided into 100 parts of Rs.1/- each. So there are 100 shares of that joint-stock company. Now, these 100 shares are divided among all the owners based on the amount that they have put into the business. So for example, if there is an owner who has invested Rs.20/- in the business, he will get 20 shares. Suppose there is another owner who has put only Rs.5/- in the business. In that case, he will have 5 shares.
So the shares are divided among the owners based on whatever is the amount contributed by each of them.
What are shareholders or who are
shareholders?
Shareholders are the owners of the company. They are called shareholders as they hold the shares of the company. Every owner of the company gets the number of shares based on capital invested by him/her in the business.
Before you understand what is the stock market, it is important for you to know what is capital.
Capital is the money put into the business by the owner.
So the amount which is invested in the business by the owner is called capital.
For example, if you start a business by putting Rs.100/- then Rs.100/- is your capital.
What is a joint-stock company or a limited company?
It's important for you to understand this concept also. A joint-stock company is a form of business organisation which has many owners. So a joint-stock company does not have only a single owner. There are quite a few people who come together and do a business and such form of business organisation is called a joint-stock company or a limited company.
Next thing which you need to understand is what is share capital.
Share capital is the capital invested by the owners of the joint-stock company. So the capital of a joint-stock company is called share capital.
What is a share or what are shares?
The capital of the joint-stock company is divided into a lot of small parts and each such part is called a share. For example, if the owners of a joint-stock company come together and invest say Rs.100/- together, then this Rs.100/- may be divided into 10 shares of Rs.10/- each or 100 shares of Rs.1/- each. Let us assume that the capital of a joint-stock company is Rs.100/-. So Rs.100/- is the share capital. Let us also assume that the share capital has been divided into 100 parts of Rs.1/- each. So there are 100 shares of that joint-stock company. Now, these 100 shares are divided among all the owners based on the amount that they have put into the business. So for example, if there is an owner who has invested Rs.20/- in the business, he will get 20 shares. Suppose there is another owner who has put only Rs.5/- in the business. In that case, he will have 5 shares.
So the shares are divided among the owners based on whatever is the amount contributed by each of them.
What are shareholders or who are
shareholders?
Shareholders are the owners of the company. They are called shareholders as they hold the shares of the company. Every owner of the company gets the number of shares based on capital invested by him/her in the business.
No comments:
Post a Comment