ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Share is defined as unit of ownership in a company. It is one of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits.

Detailed explanation-2: -What Are Stocks? 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-3: -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-4: -Stocks are securities that represent ownership in a corporation. When an investor buys a company’s stock, that person is not lending the company money but is buying a percentage of ownership in that company.

Detailed explanation-5: -A share is a unit of ownership delivered by a capital company. In most cases, it is a commercial company with a limited liability. Holding one of several shares – in other words, being a shareholder – means that you own a part of the company’s capital but you are not held personally liable for the company’s debts.