Meaning and rights
A share represents an ownership interest in a company and the rights connected with it. Their content depends on the class of share and the company’s corporate rules. A common share usually gives economic exposure to the business, but it does not promise a fixed return or repayment of the purchase price.
Price, profit and dividends
If a company develops and its profit grows, investors may value its shares more highly. However, the price can fall even with good reporting if market expectations were higher still. Dividends also depend on the relevant decision and the conditions for entitlement to payment.
What it is not
A share is not a deposit or a company debt instrument. When it is bought from another investor on the secondary market, the buyer normally pays the seller rather than the business. Before investing, review the financial statements, capital structure, rights of the specific share class and industry risks. Past price growth does not prove a positive future result.