Companies sells a part its ownership to the public in the form of shares. Each unit of share entitles you to a part ownership in the company. Higher the number of shares you own, higher your percentage ownership in the company. The company can also issue a lot of different types of shares which have changes in the type of privileges they carry with them.

The company can issue as many number of shares as they fancy as long as there are buyers for the shares in the company. If the company makes a profit in the future, it has a choice of putting the money back into the business or reward its investors with dividends.

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