The Social Thinker

There are so many ads nowadays in different videos and social media stating “ Mutual Funds sahi hai ” that it’s obvious to think for a common man to give it a try. Afterall there are so many people claiming to become rich by investing on them with some claiming to give a profit of even 50% ! Is everything so fancy in the Stock world?   What is Stock or Share all about? To understand this, let’s take an example. Suppose a person “A” owns a company. Now as the company is getting bigger each year, he needs to invest capital to grow his business. But since the company now is so big that “A” does not have that capital to invest more, so what he does is, he divides his company into some number of divisions, say 1000. Now if his company’s value today is 100 crores, then each of those units i.e., Share price would be 10 lacs ( 100 cr divided by 1000 ). Now he decides that he would keep 50% of those Shares to himself and rest he would make available for the public to buy them. That mean...