Equity

This is because, when you are investing in stocks, you are essentially buying companies which keep growing in line with the economy. As companies grow over time, their profits also increase and the profits they pay to their shareholders also keeps increasing – at an aggregate. Some of the leading companies in India (like TCS, Infosys, HDFC Bank, Hindustan Unilever, ITC, Reliance, etc) have consistently grown over time and shareholders have reaped enormous benefits.

Though in the short term, stock investing may look like speculating, in the long term it is more like a fruit growing tree in your garden. The tree keeps growing and the fruits available from the tree also keeps increasing.

Stock markets may look like a zero-sum game in the short term, where one trader gains at the expense of another. On the other hand, over the long term it keeps going up. All participants in the stock market, over a longer period of time, have a proven track record of having made money. For example, the Sensex has moved up from a level of 1048 in 1990, to its current levels of nearly 36,000 – and all investors who stay invested have gained.

Share capital is the capital of a joint-stock company consisting of many individual capitals, its growth in the process of capitalization of part of the profit, as well as the attraction of part of the investors' funds through the sale of shares and bonds.