A share or equity is a piece of ownership of a company or Enterprise. A Company/ an Enterprise sells its ownership to buyers (Investors) from the general public so as to raise capital to invest in their business ventures/ expansion plans with promising returns (profits). Investors who own a company’s shares are called shareholders. Shareholders expect returns (profits) for investing in a company through dividends and capital gains.
Dividend is the sum of money that is paid by a company to its shareholders out of its profits. The amount of dividend paid to a shareholder depends on the number of shares a shareholder owns.
Capital gain is the increase in value of a share price at a stock market. This allows shareholders profit by selling shares at a higher price.