What is a Stock? What is a Stock Exchange?

 

What is a Stock? What is a Stock Exchange?

What is a Stock?

In simple terms, a stock is a part ownership in a company.

It provides a share of the company in return for the capital invested.

For example, if a company has a total of 1,00,000 shares and you buy 1 share of the company, you have 1/1,00,000th ownership of the company.

What is a Stock Exchange?

A stock exchange is a market where the exchange of stocks and other financial instruments are facilitated.

The exchange provides services to stock brokers and traders to buy or sell stocks

Companies who are interested to generate capital from the public get listed on the stock exchange.

The companies have to fulfill the documentation and fee requirements to get listed in the exchange so that their shares are available to the general public to buy and sell.

Most of the trading in the Stock Markets of India takes place through its two main stock exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).