What Are Shares?
In financial markets, a share (sometimes referred to as stock) is a unit of equity ownership in the capital stock of a corporation and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares of an enterprise. The owner of shares in a company is a shareholder (or stockholder) of the corporation. A claim is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total face value of issued shares represents the capital of a company, which may not reflect the market value of those shares.
The income received from the ownership of shares is a dividend. There are different types of shares such as equity shares, preference shares, deferred shares, redeemable shares, bonus shares, right shares, and employee stock option plan shares.
What Are The Types Of Shares?
Broadly, there are two – equity shares and preference shares. Equity shares: Equity shares are also referred to as ordinary shares. They are one of the most common kinds of shares.
How Do Shares Work?
Shareholders own shares in a company. The ‘nominal’ value of their shares is the amount they are liable to pay toward business debts. Shareholders receive a portion of company profits in relation to the number and value of their shares.
Top Shares To Buy In South Africa?
Top 5 South African Shares to Watch
- Mondi PLC. Mondi is a multinational packaging and paper conglomerate.
- Glencore plc. Glencore is a Swiss mining company that trades on the JSE.
- BHP Billiton Ltd. BHP Billiton is a mining giant from Australia.
- Anglo American plc.
- Sasol Ltd.