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Glossary
Shares
Definition
Financial instruments that represent partial ownership of a company (also known as stocks or equities).
What are shares?
Shares (stocks) represent units of ownership in a company. When investors buy shares, they acquire a stake in the company's assets and earnings and become shareholders. Shares are traded on stock exchanges and can fluctuate in value based on the company's performance and market conditions.
Why are shares important to consider when trading?
Shares are fundamental to stock trading as they represent a direct investment in a company. The performance of shares can reflect a company's financial health and market perception. Trading in shares allows investors to participate in the company's growth and potentially earn dividends. Understanding the dynamics of share prices is crucial for making informed trading decisions and achieving investment objectives.