InvestorQ : What do we understand by a share?
Priyanka Jain made post

What do we understand by a share?

rhea Babu answered.
3 years ago
The capital of a company is divided into shares. If you look at the balance sheet of any company you will find that the capital of the company is divided into shares. Each share represents part ownership of the company and that is why it is called share. A share is an Indian name and in other countries like the US, it is popularly referred to as stocks. Each share stands for a unit of ownership. These shares are offered for sale when an organization needs to raise funds and is normally done through an IPO. An Initial Public Offering (IPO) means that a company is making a portion of the share capital available for traders or investors to buy. Companies benefit from this exercise as they receive the required funds for different purposes. Also, these shares get listed.