Stock Market

Stock means ownership. As an owner, you have a claim on the assets and earnings of a company as well as voting rights with your shares.

Stock is equity, bonds are debt. Bondholders are guaranteed a return on their investment and have a higher claim than shareholders. This is generally why stocks are considered riskier investments and require a higher rate of return.

You can lose all of your investment with stocks. The flip-side of this is you can make a lot of money if you invest in the right company.

Stock markets are places where buyers and sellers of stock meet to trade. The NSE and the BSE are the most important exchanges in India.

Stock prices change according to supply and demand. There are many factors influencing prices, the most important of which is earnings.