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A share is a security that allows its owner to participate in the management of a company, as well as an opportunity to profit from it. Technically, a share represents a piece of the company. Your money generates income as the corporation grows. This can manifest itself both in rising stock prices and in the form of dividends.
However, this begs the question — why do companies issue stocks?
The reason is that in the early stages, the business requires support and a cash infusion. The authorized capital is not enough for new projects, and the company needs cash assets. In this case, the business has two options. Option one is to get a loan from a bank. The second option is to issue bonds. However, there is another way to attract financing — selling part of the company in the form of shares. Thus, the company receives the necessary financial support at the expense of investors. Holders of shares, in turn, receive dividends from the development of the business in which they have invested.