Shares and Trading

Shares represent fractional ownership in a company, while trading is the buying and selling of these shares on a stock exchange to generate profits. Investors purchase shares to gain ownership rights (dividends/voting) and profit from price changes, utilizing brokers to execute trades in primary or secondary markets.

What are Shares?
Definition: The smallest unit of ownership in a company, often used interchangeably with stocks.
Types: Equity shares (ordinary ownership) and Preference shares (priority on dividends/liquidation).
Rights: Shareholders may receive dividends (profit share) and have voting rights.
Mechanism: Companies issue shares to raise capital; their value fluctuates based on company performance, demand, and market conditions.