Shares

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Definition of 'Shares'

A share is a unit of ownership in a company. When you buy shares of a company, you become a part-owner of that company. The more shares you own, the more control you have over the company.

Shares are bought and sold on the stock market. The price of a share is determined by supply and demand. If there is more demand for a share than there is supply, the price will go up. If there is more supply than demand, the price will go down.

The value of a share can go up or down for many reasons. The company's financial performance, economic conditions, and political events can all affect the share price.

When you buy shares of a company, you are taking on some risk. There is always the possibility that the company could go bankrupt, in which case you would lose your investment. However, there is also the potential for significant gains if the company does well.

Investing in shares can be a good way to grow your wealth over time. However, it is important to do your research before you invest, and to understand the risks involved.

Here are some additional things to know about shares:

* Shares are issued by companies in order to raise capital. The money that companies raise from selling shares is used to fund their operations and growth.
* Shares can be bought and sold on the stock market. The stock market is a place where investors can buy and sell shares of companies.
* The price of a share is determined by supply and demand. If there is more demand for a share than there is supply, the price will go up. If there is more supply than demand, the price will go down.
* The value of a share can go up or down for many reasons. The company's financial performance, economic conditions, and political events can all affect the share price.
* When you buy shares of a company, you are taking on some risk. There is always the possibility that the company could go bankrupt, in which case you would lose your investment. However, there is also the potential for significant gains if the company does well.
* Investing in shares can be a good way to grow your wealth over time. However, it is important to do your research before you invest, and to understand the risks involved.

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