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One of the most profitable investments presently is shares or stock trading. When you trade shares, the trader is able to raise capital either to kick start or maintain their company. By selling to different investors the different percentages of money received are then injected into the company both to run and maintain it. The investor on the other hand receives share hold benefits which includes receiving dividends from the company profits, where by when the company receives profits, those profits are dividend among the different stake holders according to what percatage one holds hence building a consistent income. The investor also receives the right to vote in different company matters, thereby partially determining and influencing the company direction, among other benefits.
From a legal perspective, a share represents ownership of its holder on a share of the company. The owner of one or more shares of a company is entitled to dividends given the profits and is entitled to a share of the proceeds from a possible liquidation company in proportion to the number of shares held. In terms of the capital market, the shares (trade shares) are financial instruments that investors can buy or sell in an organized and regulated markets, namely Stock Exchange. Shares are financial instruments based on the capital market, trading on the one hand their offering investors the opportunity to make profits on the other hand companies to finance. Investors can profit by buying shares at a certain price and selling at a higher price, and companies can be financed by issuing new shares and selling them to interested investors.
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