The total valuation of a company is called its stock, and must be declared by the organization at the time of company formation. It is divided among the stakeholders of the company in the form of shares.
The first recorded use of shares and stocks can be found in the Roman history. The first company to issue stocks was the Dutch East India Company at the beginning of the 17th century. Stocks of a company fluctuate according to the laws of supply and demand. When a company performs well, the demand for its stocks increase, and the prices go up. Similarly, prices can also plummet according to the performance of the company.