What is a Stock?

A stock is an offer in the responsibility for organization. It addresses a case on the organization's resources and profit. At the point when you buy a stock, you become a halfway proprietor of that organization.

Example: On the off chance that you own portions of Apple, you own a minuscule piece of the whole organization. Assuming that Apple gets along nicely, the worth of your portions might increment, and you could get profits, which are bits of the organization's Profits.

For what reason Do Organizations Issue Stocks?

Organizations issue stocks to raise Investment Funds for different purposes, for example, growing activities, growing new items, or taking care of obligation.

Example:A tech startup could give stocks to raise assets for innovative work of a new application, permitting them to develop without causing obligation.

Kinds of Stocks (Common vs. Preferred)

• Common Stocks: hese permit investors casting a ballot rights and the possibility to get profits, however profits are not ensured.
• Preferred Stocks: These typically don't have casting a ballot rights however have a proper profit, which is delivered before normal stock profits.

Example: Possessing Common stock in an organization resembles having a vote at a municipal event, while claiming Preferred stock resembles getting a surefire seat at a dinner without having something to do with the menu.

Figuring out Stock Exchanges (NSE, BSE)

Stock Exchanges are stages where securities are traded. The National Stock trade (NSE) and the Bombay Stock trade (BSE) are the two biggest in India.

Example:Consider stock trades clamoring commercial centers where buyers and traders meet to trade products — for this situation, shares.