Stock & Shares
Important Terms
Capital: Money
Shares or Stock: A unit of ownership of a company. It can be bought in exchange for money.
Shareholder or Stockholder: A person who owns stock in the company
Dividend: A payout issued by the company to all stockholders or shareholders. The dividend is paid per share owned by shareholders.
Face Value: The value of a share decided by the company. This is also the initial value of a share.
Market Value: The value of the share is decided by market factors.
Brokerage: A Broker negotiates between selling and buying parties to facilitate the trade of shares. A broker may charge a commission on each trade. This charge is called Brokerage.
By Rs. x, y% stock at z, we mean
x: Face value of stock
y: Dividend per stock
z: Current Market Value of stock