Question { Syntel, 50613 }

What is Share?

Answer

Acoording to the company act 1956, and in simple word share
is fractional part of the capital of a company.

In other word we can say that,A share
is simply a divided-up unit of the value of a company. If a
company is worth £100 million, and there are 50 million
shares in issue, then each share is worth £2 (usually
listed as 200p in the money pages.) As the overall value of
the company fluctuates so does the share price.

Shares can, and do, go up and down in value for various
reasons. However, such movements are not usually for the
most obvious of reasons.

It would be very simple if a share were priced solely on
what the company in question owned - its buildings, cars,
computers, value of contracts in the pipeline etc.

The total value minus company borrowings would be divided
by the number of shares in issue and there would be the
value of each individual share. But there is a fly in the
ointment called "sentiment".