Share

Share Meaning:
In stock market terminology, the term Share refers to a single unit of stock ownership in a company. In generally, one Share of stock represents a proportional claim on a company’s ownership, its assets and its profits relative to the total amount of shares issued by that company.

Share Example:
For example, the proportional Share ownership of a company is determined by the amount of shares owned divided by the total number of shares outstanding. Consider the situation of a company that has 100 shares of stock outstanding and a person owns 20 shares of the company. This means the person owns a 20% Share of the company or one fifth of the company. Also, owning stock in a company generally entitles the shareholder to a proportional vote on the officers of the company. Depending on the company and the amount of shares owned, the shareholder may also be allowed to vote on certain corporate decisions as well.