ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called “shares” which entitles the owner to a proportion of the corporation’s assets and profits equal to how much stock they own.

Detailed explanation-2: -Stock represents a share of ownership in a corporation. A bond is a security that represents a debt owed by the corporation to the bondholder, but does not include the ownership privileges of a stockholder.

Detailed explanation-3: -The Definition of a Stock Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

Detailed explanation-4: -A stock is a type of investment that represents an ownership share in a company. Investors buy stocks that they think will go up in value over time.

Detailed explanation-5: -An individual unit of stock is known as a share. For example, if you were to say, “I own stock in Apple (NASDAQ:AAPL), ” it tells us that you are invested in Apple stock and therefore own a small portion of the equity in the company.