What is share in share market or stock market, why the share price moves up and down?
What is a Share in the Stock Market? A share, also called a stock, is a small unit of ownership in a company. When a company wants to raise money for growth, it divides its ownership into shares and sells them to the public through the stock market. By purchasing a share, you become a partial owner of that company. For example, if a company has 1,000 shares and you own 10 of them, you own 1% of the company. Shares come with certain benefits, such as: Capital Gains: If the share price increases, you can sell it at a higher price to earn a profit. Dividends: Some companies share their profits with shareholders in the form of dividends. Voting Rights: As a shareholder, you may have the right to vote on key company decisions. Types of Shares Shares are broadly categorized into two types: Common Shares: Most people invest in common shares. They offer voting rights and potential dividends. However, dividends are not guaranteed and depend on the company’s profitability. Prefe...