LESSON 1 OF 16 · 2 MIN
What is a share?
IN SHORTA share is a small piece of ownership in a company. Its price is what buyers and sellers agree it is worth right now.
A company can split its ownership into millions of equal pieces called shares. If you own one share in a company with ten million shares, you own one ten-millionth of it.
Owning shares can pay you in two ways. The price can rise if people come to value the company more, and some companies pay part of their profit to shareholders as a dividend.
Why prices change
A share price is simply the last price a buyer and a seller agreed. When more people want to buy than sell, the price rises until enough sellers appear. News about the company, its industry or the economy changes how much people want to own it.
KEY POINTA share price reflects what people expect about the future, not just how the company is doing today.
Share prices can fall as well as rise, and a company can fail. That is why investors spread their money across several companies (see Managing risk).
Try it: Look up a company you know and see its share price and chart.
Find a companyEducation only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.