What is Share / Stock ?

Share is a single unit of total Authorized Capital of a Public Limited Company. Actually Share means the portion of ownership over the company.

Explanation: Suppose A & B co. is a public limited company, who has authorized capital of $100.And the company divides its total capital ($100) into 10 equal units of $10 each.Now the each unit of $10 is called a SHARE of “A & B co.”. When anyone buys the share of a company, in return the guy get a portion of ownership over that company. As a owner he gets Profit (Dividend) each year if the company make profit.



You may have interest about the followings
What is Authorized Capital ?
What is Public Limited Company ?
What is Profit ?
What is Dividend ?