Share

Share (or stock) — the smallest part of the company’s capital that gives its owner the right to receive dividends (a share in the company’s profits). Shareholders have the right to vote on the company management and receive dividends when the company’s profits are distributed between shareholders. The owners of preferred shares do not participate in company management, yet receive dividends, regardless of the company’s financial situation. Companies’ shares (stocks) are bought and sold on the stock market. Shares are often included in most of investment portfolios, as this asset ensures steady income. Companies’ shares may change their price, due to changes in financial indicators of shares emitent and the stock market sentiment, which lets us speculate on the shares value. Shares have higher profitability than other assets. When trading binary options, the shares are not acquired physically: the transactions are based on their price rise or price reduction.