274 SHARES Share Tweet

The European shares went down on Monday while there is a possibility for the United States to increase the base rates for the next month, after the EDF speech.

The Stoxx Europe 600 index dropped 0.6% to 341.74. The largest decline was recorded by car manufacturers. The volume of shares traded was 60% lower than the average of the last 30 days, while the UK market was closed for a bank holiday.

Shares closed rising on Friday after the EDF chief’s comments about the US economic recovery, which led to optimism in the market. She reiterated that the central bank will take a gradual approach to increasing the cost of borrowing.

Frankfurt DAX stock market index fell down 0.95%, while the index of the Paris Bourse CAC 40 fell 0.96%. The Spanish stock index, IBEX 35, had a decrease of 0.86%.

From a legal perspective, a share represents ownership of its holder on a share of the company. The owner of one or more shares of a company is entitled to dividends granted from its profit, has the right to participate in decision-making through the General Shareholders Meeting and entitled to a share of the proceeds from a possible liquidation of the company in proportion to the number of shares held.

From the viewpoint of the capital market, the shares are financial instruments that investors can buy or sell, in an organized and regulated market, namely Stock Exchange.

Shares are basic financial instruments of the capital market. Trading them offering investors the opportunity to make profits and companies the opportunity to finance. Investors can profit by buying shares at a certain price and selling at a higher price, and companies can be financed by issuing new shares and selling them to interested investors.