What is a share?
A share is a basic unit of ownership in a company, the company’s profits released as dividends.
Why do companies issue shares?
To raise capital. The company may be seeking capital to fund the purchase of new equipment or premises, diversify their operations or expand into new markets.
What makes the share price rise or fall?
There are many reasons why the value of shares increase or decrease, market and economic conditions, other financial markets and investor expectations, but generally it gets back to supply and demand.
If there are more people who want to buy shares than people who want to sell them, the share price rises. If there are fewer people who want to buy than people who want to sell, the share price falls.
A share is a basic unit of ownership in a company, the company’s profits released as dividends.
Why do companies issue shares?
To raise capital. The company may be seeking capital to fund the purchase of new equipment or premises, diversify their operations or expand into new markets.
What makes the share price rise or fall?
There are many reasons why the value of shares increase or decrease, market and economic conditions, other financial markets and investor expectations, but generally it gets back to supply and demand.
If there are more people who want to buy shares than people who want to sell them, the share price rises. If there are fewer people who want to buy than people who want to sell, the share price falls.
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