How to Learn Stock Market from Scratch | Day - 1
What is actually Stock or Share? Let's begin from something that we already know. The price of Pen Reynolds-045 is Rs 6, so one needs to pay Rs 6 to buy it and own it wholly. Now let's assume there is a company named XYZ of total worth(price) is Rs 10,000. You need to pay Rs 10,000 to buy it and own that company wholly. This total worth or net worth of the company is termed as Company's Capital . The statement "You need to pay the Company's Capital to own the company wholly" is technically correct but in reality Company's Capital is so huge that a single person can't pay in order to buy the whole company. One single person usually doesn't own the whole company the way you can own R-045 Pen by paying Rs 6. For example the Capital Amount of Reliance Industries Limited (RIL) company is around Rs 10 Lac Crore and thus as an individual if you want to own Reliance company wholly you need to pay Rs 10 Lac Crore =Rs 10,00,000