Service Description
he Definition of a Stock
Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater.Another extremely important feature of stock is its limited liability. This is a legal term,which means that you are not be personally liable in the case of the company not being able to pay its debts.
Debt vs. Equity
At some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock. A company can borrow by taking a loan from a bank or by issuing bonds. Both methods fit under the umbrella of "debt financing." On the other hand, issuing stock is called "equity financing"
Risk
It must be emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing. Although risk might sound all negative, there is also a bright side. Taking-on greater risk demands a greater return on your investment.
JKSPL provides you the platform to buy and sell stock. And along with our expertise, you can be sure of making the right decisions.
