WHAT ARE STOCKS AND SHARES?

INTRODUCTION
Are you bored with the 9 to 5 job? Want something in your life to change instantly? Want your dreams come true. The dream that you are relaxing in your big house and in flow of money in the form of dividend cheques .Imagine, yourself an owner of a business and watch your company grow.
All these and much more are possible by owning STOCKS. In today’s fast moving world , stocks which was always the ball game of the rich and wealthy people , with the trading technologies expanding itself , the market has opened its doors to each and all who wish to own stock.
If you wish to multiply your money and want build wealth then owning stock is the thing for you .But before you take the plunge in this deep sea of stock market ,its vital and important for you understand about the stocks and how they trade. Most people have heard about stocks from friends or often have overheard a conversation, like “oh Mr. Shah, did wonders on the stock market and now is starting a new firm “or “Mr. Patel lost ...XYZ amount in the stock market. Though being a very popular topic of discussion in most of the places, there is a lot of misconception about it. Everything in life is not free so even this money building financial tool also has risk factors in it. The only way is to educate our self and protect our self by investing your money at the right place.

CHAPTER 2
WHAT ARE STOCKS AND SHARES?
To run a company or a business, you need funds. This capital can either be generated from within or one has to be borrowed from outside. Borrowing the money can always be a very expensive option , what companies do is give a unit of ownership interest in a corporation or a financial asset, which is called a SHARE and the person possessing the share is called SHARE HOLDER.
It does not mean that if a person is SHAREHOLDER he/she gets to make decisions in the day to day operations of the business. They get the equal share in the profits of the business in the form of dividends.
STOCK signifies the ownership on the company’s assets and earnings. So in totality SHARES and STOCKS in today’s financial market mean the same thing.
Normally a layman would buy certain shares and keep it just to earn dividends, where as few investors who want to deal in the stock trading would buy and sell them. The prices of the shares keep on rising and falling, so you should d be prepared to lose your investment anytime.
There are investors in the stock market who have lost their fortune in it and few have billions.
So what is most important before entering into the big well of stock market is to educate yourself properly and learn in which shares to invest which can give you big returns.