Sunday, June 11, 2023

What is a share?

A Share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is directly issued by a company through IPO or can be purchased from the stock market. 

By owning a share you can earn a portion of the company's profit called dividend. Also, by buying and selling the shares you get capital gain. So, your return is the dividend plus the capital gain. 

However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.

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