👉 Shares, or stock shares, represent ownership in a company; when an individual purchases shares, they acquire a fractional ownership stake in the corporation. Each share typically corresponds to a specific number of shares, which is determined by the company's capital structure and the terms of the share issuance. When a company issues new shares, it can raise capital for various purposes such as expansion, debt reduction, or other business needs. Shares are traded on stock exchanges, and their value fluctuates based on market demand, company performance, economic conditions, and investor sentiment. The price of shares reflects the perceived value of the company's assets, earnings potential, and growth prospects, allowing investors to buy or sell shares in the hope of generating returns. Shares can be held by individuals, institutions, or even other companies, and ownership distribution among shareholders can influence corporate governance and decision-making processes.
