What is component and shared rule set types?

If you go to category tab in the rule set, you can see a drop down for 'Ruleset Type'. Different types of rulesets are 'Standard','Component','Shared'. Let us understand about component and shared ruleset types.

Component ruleset

A component ruleset contains rules that are designed to encapsulate a specific functionality, that is reusable across multiple applications. When a component ruleset is installed in multiple systems, the class of the object may vary from system to system.

So, we have to update them.