Owning a Share of a business isn't going to mean that you may interfere with the day-to-day working of a company as well as you can call the CEO of the company for any particular matter linked to that company. You're not able to even take part in electing the board of directors of that company. Therefore, why do people buy shares, the simple reason is to earn profit, to gain something on their investment.

How shall you know that you own a Share in particular company.

Holding a Stock of the company means that you are among the many owners of the company although your claim might be very small to everything that the company owns but being an owner you are permitted to share the company's earnings as well as the voting rights attached to that specific stock. The total amount of getting (or sometimes loss) which you can claim is directly proportional to the amount of money you have put in.

When you buy a stock or share of any company then that stock is represented by a certificate which acts as a evidence of your ownership. But this was the case before online trading was started. In essence, you can have De-mat account attached with you savings account within your bank and you'll store your shares there. It implies that your document is kept within an electronic form that makes share trading easy and quickly.

Now you could be thinking why a business is thinking about giving you a part of ownership. Well the simple answer is to raise money. To do this, companies can either borrow it from somebody or raise it by selling included in the company, which is called issuing stocks. Issuing stock is advantageous for the company because it will not require the company to pay back the cash. All that the shareholders get in return for their money is the hope that the shares will someday be worth more than what they compensated to them. The very first sale of a stock, which is issued through the private company itself, is called the initial public offering (IPO).

Now you know the fundamental difference between Stocks, Shares and Equities, Recommended Webpage You might have also gained some know-how about stock-market trading and some general questions like why a company issues stocks. In the event that you are enthusiastic about investing in Stock Markets but a bit confused due to lack of knowledge or even the complexities and risks involved, then you will find often some stock advisories which can you offer tips to invest in shares and make your money grow.