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FINANCIAL TERMS

Share

Description

A share means one unit of ownership in a company. In simple terms, a share is one small piece of a company that an investor can own. Shares are important because they allow people to invest in companies and allow companies to raise money. If a company grows and becomes more valuable, the price of its shares may rise. For example, if a company has 1 million shares and you own 1 share, you own a very small part of that company. A share is closely related to stock, but they are not always used in exactly the same way. Stock often refers to ownership in a company in general, while a share usually means a specific unit of that ownership.