Stocks and Equity

1. Stocks and Equity SHREYANS NAHAR

2. What is a Stock?
 The stock (also capital stock) of a corporation is constituted of
the equity stock of its owners. A single share of the stock represents
fractional ownership of the corporation in proportion to the total number
of shares.
 The shares together form stock. The stock of a corporation is partitioned
into shares, the total of which are stated at the time of business formation.
Additional shares may subsequently be authorized by the existing
shareholders and issued by the company. In some jurisdictions, each share
of stock has a certain declared par value, which is a nominal accounting
value used to represent the equity on the balance sheet of the corporation
Source -Wikipedia

3. Purpose of a Stock?
 Stock exchanges were originally conceived for the
public interest and had a clear public purpose: to
allow companies to raise equity from a large pool of
investors and to provide a market for investors to
later sell their shares in those companies

4. Importance of a stock
 Provide a competitive space for different companies
 Leads to a better economic growth
 Institutions and Public can influence governance
 Help determine price and allow transparency

5. Key Players In the Stock Market?
Buyers and Sellers
Buying side – Investors
The buy side consists of players who buy exchange services. Liquidity is the most important of these
services. Liquidity is the ability to trade when you want to trade.
Buy side includes:
1. Individuals (retail investors)
2. Funds
3. Governments
Selling side – Company
The Sell side consists of players who sell and exchange services.
1. Firms
2. Company stocks
3. Broker and dealers who sell the company’s stocks

6. Few companies listed in the stock
market

7. Types of Stock exchange market in the world