What is a "SHARE"?

                  Upto seventeenth century the world economy was primarily dependent on agriculture and its allied activities but after 1750 thanks to the Industrial revolution the situation has changed and there was a need for establishment of large scale industries.
                  These large scale industries used to make mass production and there was a necessity for huge capital investment.To provide these capital many types of business organisations has evolved such as sole proprietor,partnership etc.But they were unable to provide such huge capital.
                   Then evolved Company form of Organisation which can provide huge capital.The question is how companies can raise huge amount of capital?
                    A company first decides its capital requirement take for eg:100000. then this 1 lakh is divided into 10000 shares of RS.10 each and these share are sold to the public. There by making then the Shareholders of the company.Since they have contributed to the capital of the company they are the owners of the company.
                     There another question arises i.e since shareholder are the owners can they manage the day to day affairs of the company ?
                       The answer is 'no' because it is practically impossible for all the shareholder who are at different places to manage a company.So,they manage the business indirectly by appointing board of directors.
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