What Are Stocks?
A stock = ownership in a company.
If you buy a share of Apple Inc., you literally own a tiny piece of Apple.
- If the company grows → your stock value increases
- If it struggles → your stock falls
💡 Why People Invest in Stocks
- Wealth creation (long-term)
- Passive income (dividends)
- Beating inflation
🧠 Types of Stocks
1. Growth Stocks 🚀
- Companies growing fast
- Example: NVIDIA
- High return potential, but risky
2. Value Stocks 💰
- Undervalued companies
- Example: IBM
3. Dividend Stocks 💸
- Pay regular income
- Example: Coca-Cola
📊 Stock Market Basics
Major Stock Exchanges:
- India → National Stock Exchange (NSE), BSE
- US → NASDAQ, NYSE
📉 Important Terms (You NEED These)
- Market Cap → Company size
- P/E Ratio → Valuation (expensive or cheap)
- Bull Market 🐂 → Prices going up
- Bear Market 🐻 → Prices going down
- Volume → Number of shares traded
🧾 How You Make Money
1. Capital Gain
Buy low → Sell high
2. Dividends
Company pays you regularly