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3 Cards in this Set
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- Back
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Shares represent ownership of a company. When an individual buys shares in your company, they become one of its owners. Shareholders choose who runs a company and are involved in making key decisions, such as whether a business should be sold. |
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A share owner can sell their share for a higher price then what they paid for it - this happens if a company is doing well and makes good profits,making a share more valuable.However there could be a completely different situation if the company is getting bad profits then no one would want to buy the share which pays no dividends. |
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If a company is doing economically well then a shareholder could get an increase in the amount of money he is making (but only if the owner would choose to do so).There is also a chance that a person who is buying a share could get a dividend which is some extra money when he is buying the share but again only if the company is doing economically well and the owner of the company whats to. |
