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Chapter 6 – Agriculture in Stock Exchange

Meaning of Stock Exchange

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The activities of stock exchange are about selling part or all of an enterprise or corporation to numerous part-owners so as to generate money to finance that enterprise. The money which is called Capital is generated by a corporation or organization through the sales and distribution of parts or all to several part-owners is called Stock. One unit of stock is called shares, while the combination of those who bought shares i.e. those who contributed money towards the setting up of the business are called Shareholders.

The shareholders are given share certificate as clear evidence of the amount of money contributed and that makes them part-owners.

Share Certificate is the document which clearly shows the number of shares each holder contributed to the business and other relevant information.

Meaning of Stock Exchange

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