A share is a unit of ownership in a company. When you buy a share, you become a partial owner of that company.
🔍 Simple Definition
A share represents a small portion of a company’s total capital.
🧠 Example
If you buy shares of Tata Consultancy Services, you own a small part of the company.
- If the company earns profit → you may get dividends
- If the company grows → share price increases
- If the company faces losses → share price may fall
📊 Key Features of Shares
- ✔️ Ownership – You become a part-owner of the company
- ✔️ Dividends – Shareholders may receive a portion of profits
- ✔️ Voting Rights – Some shares allow voting in company decisions
- ✔️ Capital Gain – Profit from increase in share price
🏢 Where Are Shares Traded?
Shares are bought and sold on stock exchanges like:
- National Stock Exchange (NSE)
- Bombay Stock Exchange (BSE)
🔄 Types of Shares
- Equity Shares
- Most common type
- Carry voting rights
- Higher risk and higher return
- Preference Shares
- Fixed dividend
- Priority over equity shareholders
- Usually no voting rights
⚠️ Important Note
Owning shares means sharing both profits and risks of a company.
A share is the basic building block of the stock market. It gives investors an opportunity to participate in a company’s growth and earn returns over time.