What is a share ?


In finance share means unit of the the various financial instrument like stocks , mutual fund etc. It is a documents given by company to its investors. Holder of the shares is one of the owner of the company.  If you hold the shares then you will get portion of the profit as dividend , when you will sell a shares you will get also capital gain, so investing in share gives profit in the two manner dividend plus capital gain. you run also risk of making capital loss when you will sell a shares below your buying price.

Some Important fact of shares:

  • Owning a shares means you are the partial honour of the company, and you can get voting right in certain company issue.
  • If you will invest in the shares for a long term you can get the more 15% annual return in the your capital value. but there is no such types of guarantee you can face also capital loss its depends upon economic condition of the country.
  • Ownership of shares is a document issued as a stock certificate. A stock certificate is a legal document that specifies the amount of shares owned by the Investor.

How one can invest in the shares :

  • For buying and selling a shares you need to go to the stock broker because every transaction in the stock exchange is done by the licensed member called stock broker.

Leave a Reply

Notify of