Everything about Share Finance totally explained
In
financial markets, a
share is a
unit of account for various financial instruments including
stocks,
mutual funds,
limited partnerships, and
REIT's. In
British English, use of the word
shares in the plural to refer to stock is so common that it almost replaces the word
stock itself. In
American English, the plural
stocks is widely used instead of
shares, in other words to refer to the stock (or perhaps originally stock certificates) of even a single company. Traditionalist demands that the plural
stocks be used only when referring to stock of more than one company are rarely heard nowadays.
The income received from shares is called a
dividend, and a person owning shares is called a
shareholder.
A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as
dividends, and to a portion of the value of the company in case of
liquidation. Shares can be
voting or non-voting, meaning they either do or don't carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share. Voting and non-voting shares are also known as Class A and B shares respectively.
Image:Stora Kopparberg 1288.jpg|A share entitling to 1/8 of the Stora Kopparberg copper mine.
See also...
Further Information
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