WHAT ARE SHARES?

Videos | Published on 3rd March 2016 | 69

Want to understand the basics of equity & stock trading? Then, knowing about shares should be your first step. By definition, a share is “A unit of ownership interest in a corporation or financial asset.” Need a better explanation? Then watch this AV as it explains “Shares” in the simplest of terms for stock-market beginners.

Shares are portions of a company which can be bought by an individual. Any investor can buy shares of publicly traded companies by opening a demat account with Angel Broking. Subscribe to our channel to learn more about equity and share-trading through the easy-to-understand, minute-long videos.

Transcript :

Manish owns a chocolate company in Delhi. Some time back, he wanted to expand his business, but to do so, he required 10 lac rupees. Manish had 5 lac rupees with him but still needed another 5 lac for implementing the planned expansion. To raise this sum, Manish gave up 50% of the company ownership & issued 500 shares priced at Rs. 1000 each. 50 people decided to buy 10 shares each, by investing Rs. 10,000. This made each of them 1% share-holder in Manish’s company. After 5 years, Manish’s company has grown multi-fold. With branches in Jaipur & Lucknow it is now valued at Rs. 1 crore. Each investor who bought 10 shares has also multiplied his 10,000 rupees investment to 1 lac. Shares are portions of a company, which can be bought by an individual. Any investor can buy shares of publicly traded companies by opening a demat account with Angel Broking.