Funnily enough a share is a share of a company. The value of this share fluctuates on the progress (or lack of) the company's profitabilty or the majority of investors' perception of this.
In a stock (share) market there are therefore lots of buyers and lots of sellers. As sellers outweigh buyers(and vice versa) so the price goes up and down.
Basically the 'shares' of the company are bought and sold between investors of all shapes and sizes and this is known as the secondary market.
The primary market is where companies raise funds by selling company shares.
Each share of a company has a price. Lets say $20.00
and you have 1000 shares valued at $20,000. If the share price goes up to lets say $20,50 your shares are worth more $20,500.
If the share price goes down to $19.50 the value of your shares go down to $19,500. Dealing with a broker, you can buy more
shares or sell your shares at the given price.
Really really well because I've had people explain it before but I just don't understand. Examples and all?
