Econ Grapher

Shares (also known as Stocks and Equities)

What are shares?
Shares are units of ownership in companies. As shares represent an ownership interest in the company it entitles the holder the right to vote in company meetings, a share in profits (dividends), and the right to buy and sell the shares - which may result in a profit or loss. Some companies that are large enough will "go public" and have their shares listed on an exchange, where they can be freely traded by individuals and institutions. Shares are one of the most high profile investment instruments, and the prices are watched closely by many around the world, the trading of shares provides opportunity to generate gains from capital.

How does it relate to Markets?
Shares are the core security that trades on the stock markets, and this open and regulated trading of equities allows a market price to be determined as many participants research and monitor the various companies and buy and sell accordingly. Through this monitoring, studying, and forecasting of companies by all of the market participants; stock prices incorporate the future expectations of the market. This is why people often look to the stock market (particularly stock indexes) as a leading indicator of economic activity. Thus the stock market (also known as the stock exchange, share market, and equity market) is both a viable investment option, as well as an economic indicator. 

Sources and further reading:
Investopedia - Stocks Basics: Introduction
Yahoo Finance
Reuters - Stocks
Stock Market Trivia
Google Finance

Graph Library:
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