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Showing posts with the label Who is the investor

Share Markets - What is a Share, Who is the investor

What is a Share:  Let's talk about the Stock Market or Share Market. So what is this "Share" in the market? As per definition, "Units of equity ownership in a corporation are shares." Let's simplify. Suppose there is a company A. A has a sum of 100 shares. Now all of the shares are initially owned by the founder. With time, the founder wants to raise a fund of x amount. In return of the amount the founder will offer some portion of the company. This portion of the company is the share of the company the founder is offering the buyer in return for money. The person or group offering money in exchange for shares is called the investor. So now the investor owns a percentage of the company A with the founder. Thus, investors own the units of equity in company A. But why will someone give money in exchange for some portion of the corporation? Well, with shares in a growing company, you can easily grow your money. Not just growing money, this can also help...