Concept in Definition ABC
Miscellanea / / July 04, 2021
By Victoria Bembibre, in Jan. 2009
A share is an economic part of the capital of a anonymous society or company.
On economy and business finance, each of the aliquots of the economic and social capital of a company are economic shares. institution that are sold and bought by those individuals called shareholders who want to own property in the company.
The shares as such provide economic and political rights to the holder, among them, the participation in the economic profits of the company, the right to information regarding the economic course of the institution, the right to speak and vote at the shareholders' meeting, the possibility of the free transfer of their shares to others, the right to withdraw and the preferential option when acquiring new shares available.
The shares are represented as bearer title, registered title, public deed or book entry. All of them comprising different acquisition and sale alternatives.
At the same time, the shares can be classified as common, preferred, limited voting, convertible, industrial, free of payment, with nominal value, without nominal value and other possibilities.
A share basically means a vote of confidence on the good future of a company and, as such, does not include an investment with a fixed return established, but the income is variable in accordance with the operation of the institution in the Actions. Stock fluctuation is reflected in the stock Exchange daily and, due to the high variability of the economy of companies and countries, comprise a share of risk and mobility that can alternatively result in benefit or harm to the bearer, depending on the periods of bonanza or crisis.
Although the economy is a subject of study, investigation, planning and constant speculation, there is an important aspect of chance or arbitrary in the evolution of the stock market.