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← Glossary · Basics

Share (stock)

A slice of ownership in a company. Holding a share makes you a part-owner.

A share is a unit of ownership in a public company. It usually gives you a vote at the annual general meeting and a claim on part of the profit the company pays out, the dividend.

The price of a share is set on the stock exchange by supply and demand. It reflects what investors expect from the company today and in the future. If the price rises, your stake is worth more; if it falls, less. In the worst case, such as bankruptcy, a share can become worthless.

Related terms

Not investment advice. Investing carries risk up to total loss.