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Share

A single unit of ownership in a company; owning shares means you own a piece of that business.

Simple definition

A share is one unit of ownership in a company. Buy a share and you own a small slice of that business, along with a claim on its assets and, in some cases, a right to vote or receive dividends. Picture a pizza cut into slices: each share is one slice of the whole company, and the more slices you hold, the bigger your piece.

Why it matters

Owning shares is how ordinary people can build wealth as businesses grow, but it also means sharing in losses when they don't. Understanding that a share is real ownership, not just a ticket to a rising price, helps you see both the upside and the risk.

Real-life example

A company has 1 million shares outstanding, and you own 1,000 of them. That gives you a 0.1% ownership stake in the business, plus any voting rights or dividends those shares carry.

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Frequently asked questions

What's the difference between a share and a stock?

'Stock' is the general term for ownership in companies, while a 'share' is one specific unit of that ownership. You own stock in a company by holding its shares. In everyday use the words overlap, but a share is the countable piece you actually buy and sell.

Do I have to buy a whole share?

Many brokerages now offer fractional shares, letting you buy a portion of one share with a small dollar amount. That makes even high-priced companies accessible. You still own a real slice of the business, just a smaller one, and it grows or shrinks with the share price.

What rights come with owning a share?

It depends on the share class, but common shares often include a vote on certain company matters and a right to any dividends the company chooses to pay. Shares also give a claim on assets, though shareholders are paid last if a company fails. Rights vary, so check before buying.

Turn this into a brick

Knowing what Share means is knowledge — the first half. A brick gets placed when you act on it: look up how many shares you own in one holding and what stake that represents.

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Plain-English education — not personalized legal, tax, or investment advice.