Join My Journey- “I’m just a student learning to invest. I do the research, make the mistakes, and explain the lessons in simple and plain English so you don’t have to struggle.Here, things will not be elongated and complex but simplified and to the point.”

What is a Share?- Simply for Students!

“Did you know you can own your favorite pizza place for just 1 Rupee?”

The Logic with help of Pizza:

Imagine your favorite local pizza shop. The owners want to open 100 more branches, but they need 10 Lakh Rupees. They don’t have that kind of cash, so they do something clever: they divide their brand into 10 Lakh tiny pieces and sell them for 1 Rupee each.

If you buy one piece, you aren’t just a customer anymore—you are an owner.

The Upside: If the pizza becomes famous and the business grows, your 1 Rupee piece becomes more valuable. Someone else might want to buy it from you for 5 Rupees!

The Risk: But, if the pizza starts tasting bad and shops close, your 1 Rupee might drop to 20 Paise. That is the stock market in a nutshell: Shared Risk, Shared Reward.

Note: Buying a share of Mega-Pizza doesn’t mean you get free pizza! It means you own a piece of the money they make, not the food.

This is exactly what “Zomato” or ‘Tata Motors” did. They needed money to grow, so they let the public buy ‘pieces’ of their company.

“Now you know what a share is. But how do you actually buy one? Do you go to the shop and ask? (Spoiler: No). In my next post, I’ll show you the ‘Digital Market’ where these pieces are sold.”