Step-by-step explanation:
Stocks shares of a company is the legal claim of the buyer over the assets and earnings of a company. When a person buys stocks of a company, he is given a certificate of ownership on the assets and capital or earnings of the company. When you buy more and more stocks, your strength or claim or share on the company increases automatically. So it is always advised to buy stocks of company which is doing good in the market. In this way, you would earn handsome amount of earnings as well and there are less chances of financial instability of the company.