Stock and shares

STOCK AND SHARES

·       The total amount of money needed to run the company is called the stock-capital.

·       The whole capital is divided into small units, called shares or stock.

·       The annual profit distributed among share holders is called dividend. Dividend is paid annually as per share or as a percentage.

·       The value of a share or stock printed on the share-certificate is called its face values or nominal value or par value.

·       The stock of different companies are sold and bought in the open market through brokers at stock-exchanges

·       The broker’s charge is called brokerage.

·       The face value of a share always remains the same.

·       The market value of a share changes from time to time.

·       Dividend is always paid on the face value of a share.