Jun 12, 2013

What is Investment? Why Invest? Why Invest in Stocks ?

WHAT IS INVESTMENT? Investment is nothing but parking your income/cash somewhere with an expectation or assurance of interest/dividend or capital appreciation or both (an instrument, of asset class). If you have cash piled up in a locker it is not an investment, it is merely currency or cash amount. Your bank savings account also doesn't come under instruments as it gives only 3-4% return and meant for primarily parking your cash rather than investment. (However...

What is a Stock or Share? What is a Stock Exchange?

What is a Stock or Share? A stock or Share can be simply defined as a share or ownership into a business which has been formed under a legal registered company. It is an ownership part. For example ABC Industries Ltd has 1 lakh equity shares.  Suppose Mr.A owns this shares are the owner of the company and so its profit and loss.  A share is also known as ‘equity’, ‘stock’, ‘scrip’, ‘counter’ also in stock market parlance. What...