What is a stock exchange?

A stock exchange or stock market is the physical or virtual place where the issuing and trading of shares takes place. The stock market is one of the most important components of an economy, as it provides companies with capital in exchange for giving investors partial ownership of the firm. Stock markets can be split into two … Continue reading What is a stock exchange?

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What is a share?

A share (or stock) is a security that gives the buyer part of the ownership of the issuing company. Moreover, a the owner of a share can also have the right to claim a part of the earning gained by the enterprise, which might be distributed among shareholders as dividends. There are two types of shares: common and preferred. The first ones usually allow … Continue reading What is a share?