The term "share market" is often used interchangeably with "stock market." The share market, or stock market, is a financial market where individuals and institutions buy and sell ownership shares in publicly traded companies. These shares represent a portion of ownership in a company and are also known as stocks or equities.
Publicly Traded Companies: The share market deals with companies that have chosen to go public by issuing shares of their stock to the public. This process is known as an initial public offering (IPO). Once a company's shares are publicly traded, they can be bought and sold on the stock exchange.
Stock Exchanges: Share trading typically occurs on organized stock exchanges, such as the New York Stock Exchange (NYSE) in the United States, the London Stock Exchange (LSE) in the United Kingdom, and many others worldwide. These exchanges provide a centralized platform for buying and selling shares.
Ownership and Dividends: When individuals or institutions buy shares of a company, they become shareholders or stockholders, which means they have a stake in the ownership of that company. Shareholders may be entitled to receive dividends, which are a portion of the company's profits distributed to its shareholders.
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