What Are Stocks and Why Do They Go Up or Down?
- Nirav Sheth (नीरव शेठ)
- Jul 16
- 2 min read
Updated: Aug 4
In this blog, “What Are Stocks and Why Do They Go Up or Down?”, we explain what these “stocks” really are. Most people hear the word but don’t really understand what they're buying. Think of this as knowing what you're paying for—before you pay for it!
What Are Stocks (Shares)?
A stock is a small part of a company.
When you buy a stock, you become a small owner of that company.
For example, if a company has 100 shares and you buy 1, you own 1% of it.
Real-Life Example
Owning shares is like owning 1 flat in a big building — you are a part-owner.
As the building (or company) becomes better and more valuable, your share does too!
Why Do Stock Prices Go Up or Down?
If the company does well (earns profit), more people want to buy its shares → price goes up.
If the company faces problems, people sell the stock → price goes down.
News, business results, and general market mood also affect prices.
Other Things That Affect Price
Demand and supply – more buyers = higher price
Company news – new product, court case, new CEO
Global events – wars, elections, oil prices, etc.
Conclusion
In "What Are Stocks and Why Do They Go Up or Down?", we saw that a stock is not just a number — it's a piece of a real company. Its value changes based on the company’s performance, the market mood, and the news. With this knowledge, beginners can now look at stock prices with understanding, not confusion.
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