A company is composed of capital, that is anything that confers value or benefit to the company, like money or buildings. This capital is divided into pieces used to provide an equal distribution of profits in the form of dividends and to ease the analysis of the company results (like the year earnings or the dividend yield). Each of these pieces is called a share.
For example, if a small company has an office, some furniture and several laptops that together are valued in 10.000 dollars, owners can create 10.000 pieces and assign a value of 1 dollar to each piece. Anyone who owns at least 1 piece becomes an owner of the company.
The value of the capital can change as a result of the increase or decrease in the value of an asset or investment over time, having a reflection in the value of each share.
Also, the number of shares the capital is divided into can change because of different reasons like shares repurchase or a capital increase, affecting directly to the value of each share.
A share is then, basically, a small piece of a company.
Now that we have enough notions about what a share is, we can have a look to what we should have into account if we want to pick a share for our #imap journey.
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