In today’s world its really common to listen people investing in Shares/Stocks, but real question is: What are these Shares/Stocks?
Well what I understand, Shares/Stocks are the units of partnership one holds in the company.
Take a look at this example:
Suppose you need to start a company, say TechPatel Power Ltd. which requires Rs.100 crore. But you have only Rs.25 crore. Then you will be left with 2 options:
1. Borrow Rs.75 crore from Bank or other Financial Institution. [Read more…]