Share

Share: A share represents a unit of ownership in a company or financial Asset. When you buy a share, you acquire a portion of the company, and your ownership stake can increase or decrease based on the company’s performance and market conditions. Shares are typically traded on Stock exchanges.

Examples:

• Common Shares: These shares give Shareholders voting rights and the potential for dividends. For instance, owning common shares of Company A allows you to vote on corporate policies.
• Preferred Shares: These shares generally do not provide voting rights but have a higher claim on Assets and earnings. For example, if Company B goes bankrupt, preferred Shareholders are paid before common Shareholders.

Cases:

• Initial Public Offering (IPO): When Company C goes public, it offers shares to investors for the first time, allowing them to buy a stake in the company.
• Stock Buyback: Company D decides to buy back its shares from the market, which can increase the value of remaining shares for investors.