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Share

A share represents a unit of ownership in a company or financial asset. When an individual purchases shares in a company, they essentially own a fraction of that company and are entitled to a portion of its profits, usually through dividends. Shares are commonly bought and sold on stock exchanges, and their prices fluctuate based on market demand, company performance, and broader economic factors.

Example

If an investor buys 100 shares of a company at $10 each, they own a part of the company and will benefit from its financial success, either through price appreciation or dividend payments.

Key points

Represents ownership in a company or asset.

Shareholders may receive dividends and can vote on corporate matters.

Share prices fluctuate based on market conditions and company performance.

Quick Answers to Curious Questions

Share prices are affected by company performance, investor sentiment, and broader economic trends.

Investors can profit from capital appreciation and dividends, along with voting rights in some cases.

Issuing new shares can dilute the ownership percentage of existing shareholders, potentially lowering the value of their shares.
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