What Are Shares? | Stock-Eazy

Shares are like slices of a big pizza called a company.
When you buy a share, you own a small piece of that company.

For example, if a company has 100 total shares and you own 10, you own 10% of the company!

If the company earns money, you get a part of that profit.
If it loses money, you also share in the loss.

🍕 Think of it like this:
Imagine you and your friends start a lemonade stand. You all chip in money and agree to split profits based on how much each person contributed.
That's exactly what shares do — they represent how much of the company you own and how much profit (or loss) comes your way.

Pie chart: Your Share (10%) of Total Shares

₹ Profit → Split accordingly

Next Question You Might Like:

Why do companies issue shares instead of borrowing money from banks?

⚠️ Remember: Owning shares means sharing both profits and risks. Always understand what you're investing in!

Companies issue shares to raise money without taking on debt.

Imagine you want to open a new store, but you don't have enough money. You can either:

Borrow from a bank (you'll have to pay interest every year)
Sell a part of your business (no interest, but now someone else owns a piece too)

Most companies choose to issue shares because:

They avoid paying back loans with interest
They get partners who believe in their growth
It helps them grow faster without financial pressure

🏠 Think of it like this:
If you're building a house and need money, you can either:

Take a loan from the bank and pay it back with interest
Invite a friend to invest money in exchange for a share of the house

Issuing shares is like choosing the second option — no monthly payments, but shared ownership.

Next Question You Might Like:

How can I buy shares?

⚠️ Keep in mind: When a company issues more shares, existing owners own a smaller percentage — just like cutting a cake into more slices!