Par Value of Share: This is the face value of a share. It is written on the share and the total value of these constitute the share capital of the company. Par value of a share may also be called nominal value or face value.

Market Value of Shares: This is the price at which a share is quoted at a stock exchange. If a company has a good stand and hence reputation, its shares are likely to be sold at a higher value, than its face value. The market value of shares is flexible and depends on the forces of demand and supply. Such companies make large profits and pay good dividends to the shareholders.

Go Public: This is a situation when a private company needs to expand its level of production and converts to a public company so that it can sell shares in a stock exchange.

Issuing Houses: These are money (finance) organisations which deal in new shares and securities on behalf of public companies.

Dividend: This is a reward paid to share capital or shareholders. This depends on the number and value of shares held.

Gilt-edged Securities: These are bonds issued by governments.   These securities raise money for the government and are dry safe in the following ways:-

a)       they carry a fixed rate of interest.

b)       interest payments are periodic.

c)        they are redeemable.

 

Portfolio: This is a group of several securities handled by one investor. Some people invest in a number of companies hence aiming at high profits.

Blue Chips: These are first class securities. They are shares or stocks of public companies with a high sound reputation e.g those of Rockefeller International. Holders of Blue Chips are normally assured of their repayments or dividends.

Stock: This is a name given to a block of shares.    Once a company sells shares and gets the required capital, it is said to be with "stocks" and hence the name joint stock companies.