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2007-01-03 18:20:44 · 9 answers · asked by Anonymous in Business & Finance Personal Finance

9 answers

'Shares' is a name for a unit of a companies value. eg. if u buy a share of mcdonals for $100, you are buying $100 of the total value of mcdonalds which means own a teeny-tiny part of mcdonals although its too small a part to be considered. you buy shares of a company if u think it is going to make a profit coz then the value of the company will increase and the price of the share will increase. wen u sell the share, u will get bak more money than u initially bought it al. however, u can also make a loss in the same way. hope this helps!

2007-01-03 18:25:18 · answer #1 · answered by ~Moi~ 2 · 0 0

In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning they either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share.

2007-01-04 02:40:21 · answer #2 · answered by deepak d 1 · 0 0

A Share means a part or a right in some property. In the context of Company or Stock Market a Share means a part of a capital contributed in the capital of the Company. The person possessing such share is known as shareholder.
Total equity capital of a company is divided into equal units of small denominations, each called a share. For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is said to have 20,00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights.

The concept of share has its origin in the Joint Stock Company. In mid 19th Century Europe experienced Industrial Revolution. Large Industries using heavy machineries were set up and large scale production was undertaken. For setting up these industries large amount of capital was required. It was practically impossible for a single person to set up such industry. Hence came up the concept of Joint Stock Company. In this form of organization many people came together and contributed to the capital of the Company. The shareholder were given voting rights proportionate to their contribution in Capital. The profits were also shared in the same ratio. However when the need for capital increased these companies took form of public limited companies in which the capital was invited from the public. This contribution was known as share and share certificate was issued to the shareholder. Hence came the concept of Share. The term "buying a share" means contributing to the share capital of the company and becoming a part owner in the company.

2007-01-04 05:29:05 · answer #3 · answered by Financial Wizard 2 · 0 0

shares means capital of the company
shares can be divided into two types
equity shares and preference share
equity shares means right of the company
preference shares means preference for getting the benefits

2007-01-05 03:17:51 · answer #4 · answered by manoj s 1 · 0 0

Share is known as equity in electronic form/physical form given to to an investor against his/her investment in the company's capital. Investor will get dividend per share on company's net profit, basically it shows the ownership of Company in percentage.

share is also a part of whole work.

2007-01-05 20:02:32 · answer #5 · answered by ankitesh 2 · 0 0

share 1 (shâr)

NOUN:

A part or portion belonging to, distributed to, contributed by, or owed by a person or group.

An equitable portion: do one's share of the work.

Any of the equal parts into which the capital stock of a corporation or company is divided.

VERB:

shared , shar·ing , shares

VERB:


To divide and parcel out in shares; apportion.

To participate in, use, enjoy, or experience jointly or in turns.

To relate (a secret or experience, for example) to another or others.

To accord a share in (something) to another or others: shared her chocolate bar with a friend.

VERB:

To have a share or part: shared in the profits.

To allow someone to use or enjoy something that one possesses: Being in daycare taught the child to share.

To use or enjoy something jointly or in turns: There is only one computer, so we will have to share.

IDIOM:

To be concerned or partake equally or jointly, as in a business venture.

always happy to help!!

-shamar [give me 10... 10 points!!]

2007-01-04 02:33:38 · answer #6 · answered by Anonymous · 0 0

It means that share of a copany's total worth that you are holding. Say if a company's worth is $ 1 million and you are holding 10% of the share, then the worth of your shares would be 100,000.

2007-01-04 02:35:19 · answer #7 · answered by apollo 2 · 0 0

Stocks.

2007-01-04 03:39:47 · answer #8 · answered by Anonymous · 0 1

take it or leave it ,sridevi.

2007-01-04 02:26:57 · answer #9 · answered by binda 3 · 0 1

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