How Shares Work? Many Questions (In ENGLISH)?

shares don't work,it is actually the company's profit.A share in a company is one of the unit into which the capital of the company is divided.In simple,if you are doing sole trading business as your business gains means your gains and the business' loss means your loss and in public ltd. Co. ,company's loss means all shareholder 's loss and vice-versa.the dividend and loss depends on above concept.where sometimes the value of the share goes up and down or fluacluate,it all depends upon the performance of the company and demands of the share in the market.

Before investing in company its important to sign the shareholders agreement with the other company partners. This is very important regarding future prospects. You can buy easily from over website on very descent price. It can save your lot of time and money. Website info given below from where you can buy:

In personal finance and investing, the term share is used to describe a small equity share of a company that has made a stock offering to the public. A share of stock is essentially a tiny piece of ownership in the company that issued it. The total value of a public company should be closely reflected by the total value of all of its stock. Because a shareholder is a part owner in a company, she's often entitled to income when the company does well and is paid a dividend from her share holdings. The value of stock shares increase and decrease over time, depending on the performance of the company and demand for the company's stock from other investors.

If shares sounds complicated why not simplify it? You and I have a company. We own half each, or you have 50 shares and I have 50 shares. We make a profit of £10000 (earnings). We keep £5000 (retained) in the company to buy new machinery etc. and split the other £5000 between us (dividend). The new machinery enables us to make more product which we sell to more customers and make even more profit. Surely the value of our shares has increased? I mean if we make £20000 profit this year we can use £10000 for further expansion and still pay ourselves £5k each in dividends. But then you get fed up and think this can't last, so we agree that you will sell your share to a friend. You think your share is worth £25k and so does your friend so he buys your shares (no money goes to the company). Your friend becomes the owner of half the company and looks forward to receiving his future dividends. You don't seem to realise companies are run by people and owned by people (sometimes they are the same people). A company cannot decide to pay a dividend (the people who run it decide)

In personal finance and investing, the term share is used to describe a small equity share of a company that has made a stock offering to the public. A share of stock is essentially a tiny piece of ownership in the company that issued it. The total value of a public company should be closely reflected by the total value of all of its stock. Because a shareholder is a part owner in a company, she's often entitled to income when the company does well and is paid a dividend from her share holdings. The value of stock shares increase and decrease over time, depending on the performance of the company and demand for the company's stock from other investors.

If shares sounds complicated why not simplify it? You and I have a company. We own half each, or you have 50 shares and I have 50 shares. We make a profit of £10000 (earnings). We keep £5000 (retained) in the company to buy new machinery etc. and split the other £5000 between us (dividend). The new machinery enables us to make more product which we sell to more customers and make even more profit. Surely the value of our shares has increased? I mean if we make £20000 profit this year we can use £10000 for further expansion and still pay ourselves £5k each in dividends. But then you get fed up and think this can't last, so we agree that you will sell your share to a friend. You think your share is worth £25k and so does your friend so he buys your shares (no money goes to the company). Your friend becomes the owner of half the company and looks forward to receiving his future dividends. You don't seem to realise companies are run by people and owned by people (sometimes they are the same people). A company cannot decide to pay a dividend (the people who run it decide)

shares don't work,it is actually the company's profit.A share in a company is one of the unit into which the capital of the company is divided.In simple,if you are doing sole trading business as your business gains means your gains and the business' loss means your loss and in public ltd. Co. ,company's loss means all shareholder 's loss and vice-versa.the dividend and loss depends on above concept.where sometimes the value of the share goes up and down or fluacluate,it all depends upon the performance of the company and demands of the share in the market.