A share is simply a fraction of the ownership of a company, which as part of its growth and expansion decided to issue shares to have more capital to maintain its growth rate. Such companies seeking more capital, they make an offer initial public with a certain number of shares representing ownership of the company. Those who manage to obtain the purchase of the shares, depending on the amount thereof, have the right to know all the information of the organization and may even be entitled to a chair on the board of directors.
It is extremely important to note that when a company is listed on the stock market, the shares can be traded depending on the buyers and sellers who are the ones who actually set the price of the share. A very simple way to determine what the real value of the company is is to multiply the price of the share in the market with the number of existing shares and that will give the capitalization of the company. The stock market is usually something dangerous and risky, since it is often considered a barometer of the economy.
Expectations play an important role within the stock market, since if an investor who intends to buy shares in a company finds out, for example, that the government is going to pass a law that seeks to make airlines comply with international environmental agreements and this The law represents an obstacle to airline earnings, this would lead to a possible decline in share prices and the investor may or may not buy the shares and become a member of the board of directors.
The type of profit according to the actions are the following:
Capital Gain: it is simply that obtained from the sale of a share, that is, the profit will be determined by the difference obtained between the price you bought it and the sale price of the share.
Dividends: it is when at least 30% of the profits generated by the company are distributed among the shareholders, depending on the proportion of shares that each one owns.
