In business and finance, a share (also referred to as an equity share, stock or security) means a share of ownership in a corporation (company).

The purchase of one share entitles the owner of that share to literally share in the ownership of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue via dividends.

In the common case of a publicly traded corporation, where there may be thousands of shareholders, it is impractical to have all of them making the daily decisions required to run a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company.

A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies.

The price of a stock fluctuates fundamentally due to the theory of supply and demand. Like all commodities in the market, the price of a stock is directly proportional to the demand. However, there are many factors on the basis of which the demand for a particular stock may increase or decrease. These factors are studied using methods of fundamental analysis and technical analysis to predict the changes in the stock price.

Principal Investments introduces clients to the concept of trading stocks to provide income. By using the Principal House software, clients are able to predict the likely future movement of a stock and therefore buy and then sell (trade) the stock to realise a profit. When done in a controlled and disciplined manner, trading can provide clients with an additional income, or replace their income all together, allowing clients the freedom to trade fulltime.