Share Market

The share market is a platform where shares of publicly listed companies are bought and sold. A share represents a unit of ownership in a company. When you buy a share, you become a part-owner of that company. The price of a share fluctuates based on supply and demand, company performance, and economic conditions. Key Terms Share: A unit of ownership in a company. Companies issue shares to raise capital. Shareholder: A person or institution that owns shares in a company. Stock Exchange: A regulated market where shares are traded. In Sri Lanka, the main stock exchange is the Colombo Stock Exchange (CSE). Listed Company: A company whose shares are traded on a stock exchange. Market Price: The current price at which a share is bought or sold in the market. Par Value (Face Value): The nominal value of a share as stated in the company’s memorandum. This is often a small amount (e.g., Rs. 10) and is used for accounting purposes. The market price can be above or below par value. Dividend: A portion of a company’s profit distributed to shareholders.