What is stock?
Stock or Share is the smallest part of ownership of an asset/company/firm. For example you havea shop worth of Tk.10,000/= Now if you divide the ownership of the shop in 100 parts thenevery part will be worth of 100tk. Now each of the part is called a share/stock. Now if you buy10 part/share from that 100part then you are partially an owner of the shop/firm/company.
How it can be traded?
For example if you want to transfer your part of ownership of the firm to other then you shouldsale the deed of ownership to someone else. In that case you have to maintain some papers. For example a sale deed will be signed and the deed will be registered in government registry office.In case of stock when you buy stock/share of a certain company you will be given a sharecertificate. This certificate certifies that you own that much part of the company. And you haveto register your ownership certificate with company's register. But due to some problems with paper certificate - (such as copied certificate, maintenance of huge paper certificates) a newsystem of electronic stock is made. In this system your stock is preserved in an electronic systemrather delivering you the paper shares. And you don't need to register your ownership. Theownership is automatically transfered to you and preserved in an automatic system. This systemis called Central Depository Bangladesh Limited (CDBL). I will describe this CDBL system indetails later.
What is stock exchange?
Stock exchange is a organized place or arrangement where the buyer and seller is broughttogether so they can buy sale their stocks/share. For example Dhaka Stock Exchange has aelectronic trading system called TESA and Chittagong Stock Exchange has an electronic tradingsystem called VECTOR. These two system work as an arrangement to help buy/sale of listedsecurities.
What is broker?
A broker is an intermediary who works as an media to bring together buyer and seller. And ittakes commission form the buy/sales made. A broker must be listed member of any stock exchange (i.e- DSE, CSE).
What is a listed company or unlisted company?
Companies or firms which are listed with stock exchanges are called listed public limitedcompany. On the other hand firms/companies those are not listed with any of the stock excangesare un-listed companies.