What is Stock: Definition & Examples of Stocks
Well, here are few definitions of the stock.
- Stock is ownership in a company. The most popular types are common stock and preferred stock.
- the capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity); "he owns a controlling share of the company's stock"
Now, let us discuss in the layman’s language that what is stock? Just imagine for a while that you are the owner of a Business and you cut down your business in to small pieces of equal size and you say each piece a Share(Stock). Now, you retain 51% of pieces of the business with you (Yes, The Smart Business owner will do this so he can fire CEO also) and than sell rest of the 49% pieces to the Investors and public. In this way, by selling the partial ownership of your Business, you will raise capital for your business expansion and growth as well as retain control over the Business.
Thus, the stock is not just a piece of paper or a ticker symbol only but it’s a piece of some Business. A Stock represents the ownership interest in the company.
Say for Example, if you own few shares of Reliance than it means that, you are the owner of that much part of the Business. If you own shares of Google or Microsoft than it means that, you are the part of the owner of those Giant Businesses.
Unfortunately, most of the people in this world treat the stock as a piece of paper only and that’s why most if them can’t make fortunes out of it. But great investors like Warren Buffet, treat buying stocks as they are buying the ownership in the Business.
Do you know that, the ownership of world’s greatest Businesses are selling daily on the stock market but how many of you really buy the ownership of those Businesses? Not Many…. Am I Right?
All of us have a chance to become a part of the owner of world’s greatest Businesses (By buying Stocks of these Businesses) But very few from us save money to buy stocks and that’s why most of the people remain middle class and live paycheck to paycheck and those who own a piece of great Businesses, make fortunes out of it…!!!!
Well, here are few definitions of the stock.
- Stock is ownership in a company. The most popular types are common stock and preferred stock.
- the capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity); "he owns a controlling share of the company's stock"
Now, let us discuss in the layman’s language that what is stock? Just imagine for a while that you are the owner of a Business and you cut down your business in to small pieces of equal size and you say each piece a Share(Stock). Now, you retain 51% of pieces of the business with you (Yes, The Smart Business owner will do this so he can fire CEO also) and than sell rest of the 49% pieces to the Investors and public. In this way, by selling the partial ownership of your Business, you will raise capital for your business expansion and growth as well as retain control over the Business.
Thus, the stock is not just a piece of paper or a ticker symbol only but it’s a piece of some Business. A Stock represents the ownership interest in the company.
Say for Example, if you own few shares of Reliance than it means that, you are the owner of that much part of the Business. If you own shares of Google or Microsoft than it means that, you are the part of the owner of those Giant Businesses.
Unfortunately, most of the people in this world treat the stock as a piece of paper only and that’s why most if them can’t make fortunes out of it. But great investors like Warren Buffet, treat buying stocks as they are buying the ownership in the Business.
Do you know that, the ownership of world’s greatest Businesses are selling daily on the stock market but how many of you really buy the ownership of those Businesses? Not Many…. Am I Right?
All of us have a chance to become a part of the owner of world’s greatest Businesses (By buying Stocks of these Businesses) But very few from us save money to buy stocks and that’s why most of the people remain middle class and live paycheck to paycheck and those who own a piece of great Businesses, make fortunes out of it…!!!!
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