When someone or group of persons start a company they decide how to own this company either among himself/herself or among the group. The owning unit should be equal in all aspects just like we have money which is equal in all aspects. Like if we have Rs 100 then this is the same Rs 100 that any one else in the country has.
One could come up with a random number on the number of Shares their company would have to start with. Lets say that one started a company with 1000 shares. If they spent around 1 lakh rupees to start this company then the value of their shares would be 1 lakh / 1000 share = Rs 100 per share.
So if anyone wants to buy the company all they have to do was to buy all their shares namely 1000 of them.
A share is also known as an equity which is like saying, I would like to own this company by owning its shares. So when you buy a share, you are infact owning a piece of the company.
The Stock is refered to as the name of the company itself. This is also known as a Scrip. There are public stocks and private stocks.
The public stocks are traded in Stock Exchanges like NSE or BSE.
In order to identify the Stock in an Exchange, each exchange gives a unique name to it. BSE calls it as Scrip Id, while NSE calls it as Symbol.
The same stock can be traded in two exchanges with stock exchange specific names. You could also buy stock in one exchange and sell the same stock in another exchange if this stock is traded in both exchanges.In order to stop this confusion the International Securities Identification Number (ISIN) was given to them to uniquely identify the stock across exchanges. More information can be had from www.isin.org
One could come up with a random number on the number of Shares their company would have to start with. Lets say that one started a company with 1000 shares. If they spent around 1 lakh rupees to start this company then the value of their shares would be 1 lakh / 1000 share = Rs 100 per share.
So if anyone wants to buy the company all they have to do was to buy all their shares namely 1000 of them.
A share is also known as an equity which is like saying, I would like to own this company by owning its shares. So when you buy a share, you are infact owning a piece of the company.
The Stock is refered to as the name of the company itself. This is also known as a Scrip. There are public stocks and private stocks.
The public stocks are traded in Stock Exchanges like NSE or BSE.
In order to identify the Stock in an Exchange, each exchange gives a unique name to it. BSE calls it as Scrip Id, while NSE calls it as Symbol.
The same stock can be traded in two exchanges with stock exchange specific names. You could also buy stock in one exchange and sell the same stock in another exchange if this stock is traded in both exchanges.In order to stop this confusion the International Securities Identification Number (ISIN) was given to them to uniquely identify the stock across exchanges. More information can be had from www.isin.org
No comments:
Post a Comment