A share is a title deed issued by a limited company that gives the holder a share in its capital. Shareholders are therefore involved in the company’s development.
- They can vote at general meetings of shareholders, which means that, within the limits of their share of the capital, they are involved in decision-making.
- They are also entitled to a share of the profits distributed in the form of dividends.
The shares of a listed company may be freely sold on the stock exchange.
Share prices are influenced by many factors:
- the company’s performance
- the future potential of the market in which it operates
- the economic and political environment
- the appreciation of financial market participants