GETTING STARTED IN STOCK MARKET

Companies throughout the world issue new stock shares every day. But what is stock, and why does a company issue it?

Let's imagine that you decide to start up your own business. You will need to invest in equipment, raw materials and property. All the money that you invest to start your business is called capital.

What if you don't have enough cash to buy all the needed assets?

You can raise money in two ways - by selling shares of equity or by incurring debt. Equity is simply ownership of a company. Typically, ownership units in a company are referred to as stock. Stocks, shares and equities all mean the same.

If you own a companys stock it means that you are one of the many owners of the company. This means technically you own a tiny piece of everything the company owns. As a owner you can also share the companys earnings as well(Dividends).