Share

A share is the smallest unit of ownership in a company. When a corporation divides its ownership into units that can be bought and sold, each unit is called a share. If you own shares in a company, you're known as a shareholder and have a claim to a portion of the company's assets and earnings proportional to the number of shares you hold. For example, if a company has issued 1,000,000 shares and you own 10,000 of them, you own 1% of that company. This ownership stake entitles you to 1% of any dividends paid out and 1% of the company's value if it were to be sold or liquidated. Shares are traded on stock exchanges, where their prices fluctuate based on market conditions. The price of a single share can range from just a few cents for penny stocks to thousands of dollars for companies like Berkshire Hathaway. However, the share price alone doesn't indicate a company's total value - that's determined by multiplying the share price by the total number of shares outstanding, known as market capitalization. When companies want to make their shares more accessible to everyday investors, they may perform a stock split, which increases the number of shares while proportionally reducing the price per share. Conversely, a reverse stock split decreases the number of shares while increasing the price. The number of shares you own determines your voting power in company decisions, typically one vote per share for common stock. This allows shareholders to influence major corporate decisions, such as electing board members or approving mergers. Understanding shares is essential for any investor, as they form the foundation of stock market investing and wealth building through equity ownership.