What are Stocks?

Hi,Today I will tell you 

What are Stocks?

Meet Chris 

He lives in Venice and he's obsessed with pizza. He runs his own small pizza restaurant but he wants his business to grow.

Chris knows he'll need a lot to expand his pizza restaurant a proper space,furniture,good suppliers,talented Chief etc 

He calculates it'll cost him two hundred thousand dollars.The thing is Chris only has twenty thousand dollars.

So he decides to issue stocks.

A stock is a part of ownership in a company each stock has its value is depends on the company's worth a Triano.

He needs 180 thousand dollars more to open his pizza restaurant.So he divides his business into nine even shares and attracts nine partners they invest $20,000 each.

Now Chris and his nine partners each own 10% of the pizza restaurant 

Six years later the pizza business prospers.

Chris has opened three more pizza restaurants and the company's value is two million dollars now.

Chris got the capital he needed without borrowing money and paying interest

He and his nine partners increased their initial investments from $20,000 to $200,000 but it could work the other way round for them

Chris's business may fail to compete with other pizza restaurants in the neighborhood or prices for pizza ingredients may soar and squeeze profits.

 So be aware of the associated risks and make wise investment decisions

You can also buy shares of publicly traded companies like Tesla or Walmart.If Tesla have 100 shares and you bought 1 share

You would own 1 percent of Tesla.

Click Here to learn about Shares

That's it.I hope everybody likes this blog

Thanks for Reading