What are shares, how do I use them?

I need to learn a bit of reading the stock market

Basically, they represent "ownership" in a comany. The more shares you have, the more ownership you have in that company.

Example, a company is authorized to issue 100 shares, and u buy 50 of them, then that would mean u can influence the decisions of that company since you have 50% of its ownership and you would also earn more dividends per share, that is if the share you acquired is an ordinary share.

I don't know if this applies outside of the Philippines, but ordinary shares also carry rights, such as the right to vote, right of pre-emption, etc. Preference shares have a different story.

Shares are a unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.

In the past, shareholders received a physical paper stock certificate that indicated that they owned "x" shares in a company. Today, brokerages have electronic records that show ownership details. Owning a "paperless" share makes conducting trades a simpler and more streamlined process, which is a far cry from the days were stock certificates needed to be taken to a brokerage before a trade could be conducted.

While shares are often used to refer to the stock of a corporation, shares can also represent ownership of other classes of financial assets, such as mutual funds.

If you are wanting to learn more about how the STock market basically works and alot of the stock and stock broker talk that goes on, then here is a great web site that should help you out considerably and at your own pace.

http://www.investopedia.com/default.aspx

Hope this helped you out some more.

TS

As the name suggests 'share' is the amount you can invest in a company. After making an investment you are entitled for profit in the ratio of your investment. Ofcourse you share the loss also in the ratio of your investment. In a nutshell it is an investment tool.

Visit www.myiris.com , it is a good site. U can learn and start investing.

A share is a piece of the company. If you own a share of stock in the company you have a stake in it. You are essentially a co-owner of the company, with some restrictions of course. Directors run the company, and you as a shareholder elect them when you cast a vote. Depending on the articles of incorporation each share has a value attached to it as to the strength it holds in a vote. The more shares you own the more power in the voting process you have.

As to how you USE them, I'm not sure how you mean. You buy stock in a company very basically to provide a return on the initial investment to purchase the shares. Either the shares pay a dividend (a portion of the profits) to you, or it goes up in value on the open market (NYSE, AMEX, Nasdaq etc.), at which time you can sell it for a profit.

http://www.springboardblog.blogspot.com

Look at this tutorial on basics of share trading and how u can make money out of it:

Shares are tiny pieces of a coporation. The y show ownership of that many shares of that corporation.

In the beginning â€œnewbieâ€ traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money.

In the beginning you LEARN HOW:
A] the stock market works.

B] to invest in many, many various ways.

C] to properly trade

D] many other concepts and aspects.

Beginning or novice ['newbies"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes.

In the very beginning, you READ AND LEARN about the market and how it works:
Read "Investing for Dummies"
As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.

You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopediaâ€™s dictionary.

http://investopedia.com is a free site. Itâ€™s recognized by Y! A as a "Featured Knowledge Partner".

It probably wonâ€™t be long when youâ€™ll feel youâ€™re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.

http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"
END E-MAIL #1
The thought processes are:
1] to have more successful trades than failing trades.
2] to minimize the losses of those losing trades.
3] "To live to trade another day." Having enough money in the trading account to return to the market.

ALL this is accomplished by a few true expressions used on Wall Street:
Some trading expressions come to mind:
A] "On Wall Street there aren't any gifts."
No one gives anyone else anything - not even stock tips.

B] BUlls [BUyers] earn money.
BEars [SEllers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts.

C] "Trees don't grow to Heaven. Neither do stocks or any other investments."
In other words: What goes up, MUST come down!

D] "Plan your trade. THEN trade your plan!"
Have a trading plan with rules for that plan for each strategy.

I want everyone to know I DO NOT own any portion of this manâ€™s estate, nor am I associated with him or any one else connected with him in any way. I am not part of the publishing company or an agent or anything else. This man does not know me from Adam AND I donâ€™t know him. I know of him and the wonderful book he wrote. THIS IS NOT SPAM.
You should buy a copy of this book:
â€œThe Richest Man in Babylonâ€ by George S. Classon. You can get the book on http://amazon.com
Its very easy to read. Its very easy to follow. You can write in it. You can make notes in it. All you have to do is to read five [5] pages - Letâ€™s count
1 - 2 - 3 - 4 - 5 pages of this book - or any book - each and every day.
OR You can leave it sit on the shelf, on a table or on the floor and let it collect dust.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Don't buy any shares of stock. Get out. And stay out. We're heading for a market crash and another Great Depression.

What's really going on:
http://bp2.blogger.com/_H2DePAZe2gA/R9sT...
or
http://tinyurl.com/2p5qyk
That's right: $91 Trillion in derivatives, financed by 1 1/4 trillion dollars of investor assets. That's almost double the total global GDP (approx. $48 Trillion) for JP Morgan alone. Funny money. IOU's. Another $34 Trillion for CitiBank and $32 Trillion for Bank of America, each with $1 1/4 Trillion backing their bets.

And how they got away with it:
http://biz.yahoo.com/ap/080328/derivativ...
or
http://tinyurl.com/3b8vjn

As Paul Harvery would say, "And now for the rest of the story." These are very
interesting looking numbers. And very revealing. While it's true that existing
single family home sales were up 2.8% month to month-- they were down 22.9%
year to year. How does that old saw go? Figures don't lie; but liars figure?

Existing Home Sales: Feb 08 (preliminary): Single Family Only for Printing (click on the PDF Adobe icon): http://www.realtor.org/Research.nsf/file...
Things are going to get worse, too: U.S. Economic Outlook 2008: http://tinyurl.com/pehzp or
http://www.realtor.org/Research.nsf/file...
And commercial real estate looks like it's starting to go downhill too:
Commercial Real Estate: http://tinyurl.com/yw9hf5 or
http://www.globalindices.standardandpoor... Warehouse and Desert Mountain West have already headed south.

Protecting democracy requires an Informed electorate.
If you agree, please copy and paste this to whomever you wish.

Hi there,

Good question. You can a look at the Investment Glossary for my website/book - The Young Investor at http://theyounginvestor.net/Glossary.html#S . From there you will find a definition for the word â€œShareâ€. You can also learn about investing from this site, as everything is explained in very simple terms.

Dan
http://theyounginvestor.net/

Shares are portions of a companys value.A share of a company.If its worth $10 then they sell 8 shares for $1.25 each.But they are not always valued on the true value of the companys real total assets.Liability's excluded etc.They might owe $2.50 of there value to a bank.So you could be buying stock at too high a price for what the company is really worth then suddenly they pay off debts etc the price drops and you lose.Buying stock in a company and waiting for it to go up then selling the stock for a profit is a thing of the past.Now you can buy when it goes up sell when it goes down.Also with electronic stock index's which are a group of stocks into one price value.It requires less capital to buy/sell contracts and less time for it to move back and forth go up and down etc because its the product of all the stocks moving it.Basically a share is a share in the value of a company's assets or profits either future predicted value or current value.

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