What is a share of stock?

A share of stock represents an ownership interest in a company. That ownership interest is proportional to the number of shares that the company has issued. For example, suppose a hypothetical company has issued 50 million shares of stock. Five million of those shares would be 10% and represent 10% of the company.

Is a share a security?

A share is also a type of security. It is often measured by its liability and interest. Members that own shares of a company are referred to as shareholders. They are investors that have invested funds into the business. In return, they will receive dividends on the profits of the business. A share should be moveable.

What is a share capital?

Share capital refers to all of the shares of an enterprise. The owner of shares in a company is a shareholder (or stockholder) of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder.

What is the value of a share?

The value of a share depends on several key market principles. Put simply, a share’s value is what people are willing to pay for it if is on sale. Shares are not sold at any given time though – the transaction of shares strongly depends on the liquidity of the market.