Share
A Share is a unit of account for investments.
- AKA: Financial Share.
- Context:
- It can also be defined as a unit of ownership interest in a corporation or financial asset.
- It declared or paid in form of stock dividends or stock certificates
- Example(s)
- Counter-Example(s)
- See: Equity Security, Shareholder.
References
2016
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Share_(finance)
- In financial markets, share is a unit of account for various investments. It often means the stock of a corporation, but is also used for collective investments such as mutual funds, limited partnerships, and real estate investment trusts.[1]
Corporations issue shares which are offered for sale to raise share capital. The owner of shares in the corporation is a shareholder (or stockholder) of the corporation.[2] A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company,[3] which may not reflect the market value of those shares.
The income received from the ownership of shares is a dividend. The process of purchasing and selling shares often involves going through a stockbroker as a middle man.[4]
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Termonology:
- In financial markets, share is a unit of account for various investments. It often means the stock of a corporation, but is also used for collective investments such as mutual funds, limited partnerships, and real estate investment trusts.[1]
- Shares outstanding are those that are authorized by the government, issued by the company, and held by third parties. The number of shares outstanding times the share price gives the market capitalization of the company, which if the trading price held constant would be sufficient to purchase the company.
- Treasury shares are authorized, issued, and held by the company itself.
- Issued shares is the sum of shares outstanding and treasury shares.
- Shares authorized include both issued (by the board of directors or shareholders) and unissued but authorized by the company's constitutional documents.
- (Investopedia,2016) ⇒ http://www.investopedia.com/terms/s/shares.asp
- Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. The two main types of shares are common shares and preferred shares. Physical paper stock certificates have been replaced with electronic recording of stock shares, just as mutual fund shares are recorded electronically.
- ↑ "Shares Definition". Investopedia. http://www.investopedia.com/terms/s/shares.asp. Retrieved 9 July 2013.
- ↑ Hoang, Paul (2007). "1.4 Stakeholders". Business and Management. Victoria: IBID Press. pp. 71. ISBN 1-876659-63-7.
- ↑ "Chapter 22 Company-An Introduction". Accountancy. Noida, Uttar Pradesh, India: National Institute of Open Schooling. 2008. p. 242. http://www.nos.org/srsec320newE/320EL22.pdf. Retrieved 24 August 2011.
- ↑ "How to Buy Shares". ShareWorld. http://www.shareworld.co.uk/index.php/beginners-corner/beginners-guide/. Retrieved 23 February 2012.