Shares are securities issued by companies that represent a fraction of the share capital of these companies. When you buy a share, you become a shareholder and therefore a partial owner of the company. There are two main types of shares: common and preferred.
1. Common Shares: Give the shareholder the right to vote at company meetings and participate in the distribution of profits, generally in the form of dividends. However, common stock holders are the last to receive payments in the event of the company’s liquidation.
2. Preferred Shares: They do not grant voting rights, but they offer preference in the distribution of profits and the reimbursement of capital in the event of the company’s liquidation.
Shares are traded on stock exchanges and their value may vary according to market supply and demand, as well as the performance and prospects of the company that issues them. Investing in shares can provide financial returns through share price appreciation and the receipt of dividends, but it also involves risks, such as the possibility of asset devaluation.