> ## Documentation Index
> Fetch the complete documentation index at: https://learn.chuuma.com/llms.txt
> Use this file to discover all available pages before exploring further.

# What is a share?

> What it means to own a share, and the two ways shareholders can earn.

A **share** (also called a stock) is a small unit of ownership in a company. If a company has issued one million shares and you own one hundred, you own a tiny slice of that whole business.

## Two ways a shareholder can earn

<CardGroup cols={2}>
  <Card title="The price goes up" icon="arrow-trend-up">
    Buy a share at a lower price and sell it later at a higher one — the difference is your **capital gain**. But prices can fall too, so gains are never guaranteed.
  </Card>

  <Card title="Dividends" icon="hand-holding-dollar">
    Some companies share part of their profit with shareholders as a cash payment.
  </Card>
</CardGroup>

<Tip>
  You only **lock in** a gain or a loss when you **sell**. Until then, the value on your screen can still rise or fall.
</Tip>

## A simple example

Imagine you buy 100 shares of a company at K9.50, investing K950. If the price rises to K11.00 and you sell, you receive K1,100 (before fees) — a K150 gain. If instead the price falls to K8.00 and you sell, you receive K800 — a K150 loss. The choice of when to buy and sell is yours.

<Card title="Next: what dividends are" icon="hand-holding-dollar" href="/stock-market-basics/dividends">
  Learn how the second way of earning — dividends — works.
</Card>

<Note>
  Education only — not financial advice. Investments carry risk; the value of investments can go down as well as up.
</Note>