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What are Shares

In monetary markets, a share is an element of account for different financial instruments including stocks, mutual funds, limited partnerships, and REIT's. The income expected from shares is called a dividend, and a person who owns shares is called a shareholder.

Shares are esteemed according to a variety of principles in different markets, but a fundamental premise is that a share is worth the price at which a transaction would be likely to take place were the shares to be sold. The liquidity of markets is a main consideration as to whether a share is saleable at any given time. A real sale transaction of shares between buyer and seller is generally considered to provide the best prima-facie market indicator as to the 'true value' of shares at that particular moment. A share is one of a limited number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the worth of the company in case of liquidation. Shares can be voting or non-voting, it means, either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the worth of the share. Voting and Non-Voting shares are also called as Class A and B shares.

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