What is a Share ?
Shares are exactly what the name implies; means, they are the shares in the ownership of the business. A shareholder is a part-owner of the company and can expect to share its profits but should also be prepared to share its losses.
Ordinary shares are known as equity and are the risk-sharing portion of a company’s funds. Ordinary shareholders own the company, they can vote on company policy, appoint and dismiss directors and, if the company makes a profit, they can expect to share that profit in the form of a dividend.
Companies may issue different types of shares such as ordinary shares, preference shares, etc.