What is share in Share Market?
A share represents a portion of ownership in a specific company.
Shares are considered equity instruments, as they represent ownership stakes in the company's assets and earnings.
There are two primary types of shares: common shares, which grant voting rights and participation in profits , and preferred shares.
Common shareholders may receive a portion of the company's profits in the form of dividends, which are typically paid on a per-share basis.
Common shareholders usually have the right to vote on important corporate matters, such as the election of the board of directors and major company decisions.
Shares are bought and sold on stock exchanges, facilitating liquidity and allowing investors to trade their ownership stakes.
The price of a share fluctuates in response to supply and demand factors, company performance, and broader market conditions.
The total market value of a company is determined by multiplying the share price by the number of outstanding shares
Shareholders may benefit from capital appreciation if the share price rises over time