Stocks

As the world is turning out to be a capitalistic environment, brings the necessity of stocks. The Stocks are also known as `Shares’. Shares, as the name suggests is sharing of the ownership of a property, business…. Etc .The introduction of shares is one of the significant developments in the capitalism. Let’s see how the stocks originate. If a person wants to run an organization, he needs money to produce, market and sale his product. For that, if he borrows money from the banks or lenders, he needs to repay his loan by paying heavy interest as a part of his profit or `loss’. So he is obliged to repay his debt even he makes loss, but there is another option namely, ` Stocks Issue’.

In this option, the person can go to the public for money, can issue the stocks (shares) as a partial ownership of his organization to them and make them as his partners. By issuing Stocks, he may pay part of the profit as a dividend to his partners or share owners, but there is no obligation. If the organization runs profitably, the profit is shared between them and the same applies to the loss as well. In 1602, the Dutch East India Company issued the first share on the Amsterdam Stock Exchange. It was the first company to issue stocks.