What are shares

 What are shares 

Shares, also known as stocks or equities, represent units of ownership in a company. When you purchase shares of a company, you become a shareholder and own a portion of that company. This ownership entitles you to a claim on part of the company’s assets and earnings. There are two main types of shares:

1. **Common Shares**: These give shareholders voting rights and the potential to receive dividends, which are portions of the company's profits distributed to shareholders. Common shareholders are usually the last to be paid if the company is liquidated.

2. **Preferred Shares**: These typically do not offer voting rights but provide a higher claim on assets and earnings than common shares. Preferred shareholders often receive dividends at a fixed rate and are paid before common shareholders if the company goes bankrupt.

Shares can be traded on stock exchanges, where their prices fluctuate based on supply and demand, company performance, and broader economic conditions. Investors buy shares with the hope that they will increase in value or provide dividend income.