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What Is A Share
In finance a
share is a unit of Acc. for various financial
instruments including stocks, mutual funds, limited
partnerships, & REIT's. In British English, the usage of word
share alone to refer solely to stocks is so common that it almost
replaces the word stock itself.
In simple Words, a
share or stock is a document issued by a company, which
entitles its holder to be one of owners of company. A share is
issued by a Comp. or can be purchased from the stock market.
By
owning a share you can earn a portion & selling 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.
A
company's stock price reflects what investors think
about the stock, not necessarily what the Comp. is "worth." For
example, companies that are growing quickly often trade at a higher
price than the Comp. might currently be "worth." Stock prices are also
affected by all forms of Comp. & market news. Publicly traded
companies are required to report quarterly on their financial status &
earnings. Market forces & general investor opinions can also affect
share price.
September 25th, 2009 | Leave a comment
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