In finance share is unit of Acc. for various financial instruments including shares, mutual funds, limited partnerships, and REIT's. In British English, usage of word stock alone to refer solely to shares is so common that it almost replaces word share itself.

In simple Words, a share or share is document issued by company, which entitles its holder to be one of owners of company. A stock is issued by Comp. or can be purchased from share market.

By owning stock u can earn portion and selling shares u get capital gain. So, your return is dividend plus capital gain. However, u also run risk of making capital loss if u have sold share at price below your buying price.

A company's share price reflects what investors think about share, not necessarily what Comp. is "worth." For example, Comp. that are growing quickly often trade at higher price than Comp. might currently be "worth." Stock prices are also affected by all forms of Comp. and market news. Publicly traded Comp. are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect stock price.

Quick Facts on Stocks and Shares

* Owning share or stock means u are partial owner of company, and u get voting rights in certain Comp. issues
* Over long run, shares have historically averaged about IO% annual returns However, shares offer no
guarantee of any returns and can lose value, even in long run
* Investments in shares can generate returns through dividends, even if price

How does one trade in shares ?

Every transaction in stock exchange is carried out through licensed members called brokers.

To trade in shares, u have to approach broker However, since most stock exchange brokers deal in very high volumes, they generally don't entertain small investors. These brokers have network of sub-brokers who provide them with orders.
The general investors should identify sub-broker for regular trading in shares and place his order for purchase and sale through sub-broker. The sub/broker will transmit order to his broker who'll then execute it .


What are active Shares ?

Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings aren't so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times week. Easy to buy or sell.