What is share ?🤔

What is share market?

A share market, also known as a stock market or securities market, is a platform where people can buy and sell shares of publicly traded companies. When you buy a share of a company, you become a shareholder, which means you own a small part of that company and have the right to vote at shareholder meetings. The price of a share is determined by supply and demand, and it can fluctuate throughout the day as people buy and sell shares. Share markets are an important source of financing for companies, as they allow companies to raise capital by selling shares to the public. They are also an important way for people to invest their money and potentially earn a return on their investment.

How to buy a share of company?

To buy shares of a company, you will need to open a brokerage account. A brokerage account is an account that allows you to buy and sell securities, such as stocks, bonds, and mutual funds. Once you have opened a brokerage account, you can then place an order to buy shares of a company through the broker.

There are several different types of brokerage accounts to choose from, including traditional brokerage accounts, online discount brokerage accounts, and robo-advisors. Each type of brokerage account has its own set of features and fees, so it's important to shop around and compare the different options before deciding which one is right for you.

Once you have opened a brokerage account and chosen the company that you want to invest in, you can place an order to buy shares through your broker. There are several different types of orders that you can use, including market orders, limit orders, and stop orders.

It's also important to keep in mind that buying shares carries a level of risk, as the value of your investment may fluctuate. It's a good idea to diversify your portfolio by investing in a mix of different companies and asset classes, and to consult with a financial advisor before making any investment decisions

Type of shares?

There are several types of shares that a company may issue:

Common stock: These are the most common type of shares, and they give shareholders the right to vote at shareholder meetings and to receive dividends.

Preferred stock: These shares have a higher claim on the company's assets and earnings than common stock, and they may also have a fixed dividend. Preferred shareholders may not have the same voting rights as common shareholders.

Restricted stock: These shares are issued to employees or insiders of the company and may have restrictions on when they can be sold.

No-par stock: This type of stock does not have a par value, which is a nominal value assigned to each share.

Classified stock: This type of stock is divided into different classes, each with its own set of privileges and rights.

Redeemable stock: This type of stock can be bought back by the company under certain conditions.

Cumulative stock: This type of preferred stock entitles shareholders to receive any missed dividends before common shareholders receive dividends.

Non-voting stock: This type of stock does not come with voting rights at shareholder meetings.

What is stocks?

A stock represents a share in the ownership of a company and constitutes a claim on part of the company’s assets and earnings. There are two main types of stock: common and preferred. Common stock usually entitles the holder to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares.