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What is a Share?

Share is the word which contains a meaning called ‘part’ of anything. It is used to refer and represent another term called ‘stock’ in share market. If you want me to explain in detail or classify both, stock is the total amount invested in the company which is divided into shares. It acts just as a security deposit to bring/raise money from investors. By offering part of their company, the owners invite the public to invest in their company which is nothing but Initial Public Offering (IPO). But in general, both the terms are used as same, entities to buy and sell in the stock market.

A physical or virtual document issued and distributed by the company to all its partners is called a ‘share‘. It can be bought by the traders in the stock markets through stock exchanges like NSE or BSE and sell them as when required. Literally, by owning share of a company, the trader becomes one of the partners to whom the company is supposed to provide information to some extent. The company has to announce all the results and earning ratios to all its partners who holds respective stock.

Summary for the article:

Share is a word used to represent the meaning part of a whole
This in stock market is used as an investment material
These are bought by investors to make profit out of it.
Bought and sold in the grounds called stock exchanges like NSE, BSE etc
Available in both primary and secondary markets
Shares can be bought in both physical and virtual forms
Trading is carried as per the rules of SEBI, Securities Exchange Board of India
They can be bought individually and in bulk
Both online trading and offline trading methods can be used to buy the scrips.
Demat account and/or Trading account are required to purchase shares

Posted By: Mohan Das (Analyst)                 Posted on: 2015-12-11 12:00:12                 Updated on: 2015-12-11 12:02:26