What are shares?

The shares are units which represent ownership interests in the company it self or in it’s financial assets. Though if an investor owns shares in a company that doesn’t necessarily means that he has involvement in the company’s direct control but he is entitled to the equal distribution of the company’s profits and this takes the form of dividends. On the market today there are two types of shares the common one and the preferred ones. Ever since the introduction of the electronic record keeping the market has become more easier to access and also increased the transaction speed. Back in the days usually a person has received a paper which proved that he has an X amount of ownership in a particular company. The term shares is commonly used to refer to the stock of a company but in reality it can represent ownership in other financial classes of financial assets like mutual funds.