scorecardresearchFinancial Instruments – Stocks and Shares

Financial Instruments

Stocks and Shares

It is a term that describes the part ownership of a company and is also known as share. Each share that one buys in a company is worth a sum based on the overall worth of the company. For instance, if Rs 1 lakh is the worth of a company and it has 1000 shares; each stock is worth Rs 100. If X has 10 stocks in this company, he owns 1 per cent in the company. As owner of a stock in a company, X is entitled to a share of the company’s earnings and profits. X also has proportionate voting rights in decisions taken by the company that come up for a vote and is known as shareholder in the company. 
Example: Reliance Industries Ltd, listed on the BSE closed at Rs 2,108.75 on March 15, 2021.