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.