Introduction_of_Shares_Classroom_Content.pptx

Shares represent fractional ownership in a company, turning individuals and institutions into shareholders who can profit from the company's growth through dividends and capital gains, but also bear losses

1. Introduction of Shares An Overview of Equity and Ownership in Companies

2. Definition of Shares Shares, also known as stocks or equity, represent ownership in a company. They provide shareholders with a claim on a portion of the company’s assets and earnings.

3. Ownership Stake Buying shares makes you a shareholder of the company. Your ownership percentage depends on the number of shares you own. Example: Owning 100 out of 1,000 shares gives you a 10% ownership stake.

4. Dividends Companies may distribute profits to shareholders in the form of dividends. Dividends are paid per share and depend on profitability and dividend policy.

5. Capital Appreciation Shareholders can earn from an increase in the market value of shares. Selling shares at a higher price than purchase price results in capital gain.

6. Voting Rights Shareholders often have voting rights in company decisions. Voting rights are proportional to the number of shares owned.

7. Types of Shares Common Shares: Provide voting rights and share of profits. Preferred Shares: Offer fixed dividends but usually no voting rights.

8. Stock Exchanges Shares are traded on stock exchanges, which are financial marketplaces. Examples: NYSE, NASDAQ, London Stock Exchange, Tokyo Stock Exchange.

9. Stock Indices Indices track the performance of a group of shares. Examples: S&P 500, Dow Jones Industrial Average. They reflect the overall health of the stock market.

10. Risk and Volatility Investing in shares carries risk as values fluctuate. Factors include market trends, economy, and company performance.

11. Conclusion Shares play a vital role in financial markets and wealth creation. Understanding their types, benefits, and risks helps make informed investment decisions.