Stocks

Stocks & Shares

Quick answer

A share is a unit of ownership in a company. Owning shares makes you a part-owner, entitled to a portion of the company’s profits and, usually, a vote on major decisions.

When a company sells shares to the public, it exchanges part of its ownership for capital it can invest in the business. Buyers of those shares become shareholders. If the business grows, their stake becomes more valuable; if it struggles, the stake is worth less.

Shareholders can earn a return in two ways: capital growth, where the share price rises above what they paid, and dividends, where the company distributes part of its profit to owners. Some companies pay no dividend at all and reinvest everything into growth.

Not all shares are equal. Ordinary (common) shares usually carry voting rights. Preference shares typically pay a fixed dividend ahead of ordinary shareholders but often carry no vote. In an insolvency, shareholders are paid last, after lenders and bondholders.

Shares trade on exchanges such as the NYSE, Nasdaq, LSE, or SET in Thailand. Prices move on company results, sector conditions, interest rates, and sentiment — which is why the same business can be valued very differently in different market conditions.

TrustFinance reviews the brokers and platforms that give access to equity markets, so you can compare custody arrangements, fees, and regulatory protection before choosing where to hold your shares.