ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Stocks are an investment that means you own a share in the company that issued the stock. Simply put, stocks are a way to build wealth. This is how ordinary people invest in some of the most successful companies in the world. For companies, stocks are a way to raise money to fund growth, products and other initiatives.

Detailed explanation-2: -Stocks, also known as shares or equities, might be the most well-known and simple type of investment. When you buy stock, you’re buying an ownership stake in a publicly-traded company.

Detailed explanation-3: -Securities-Another name for investments such as stocks or bonds. The name ‘securities’ comes from the documents that certify an investor’s ownership of particular stocks or bonds.

Detailed explanation-4: -Bonds, stocks, mutual funds and exchange-traded funds, or ETFs, are four basic types of investment options.

Detailed explanation-5: -Understanding Shareholders As noted above, a shareholder is an entity that owns one or more shares in a company’s stock or mutual fund. Being a shareholder (or a stockholder, as they’re also often called) comes with certain rights and responsibilities.