What is Share? A unit of ownership that represents an equal - TopicsExpress

What is Share? A unit of ownership that represents an equal proportion of a companys capital. It entitles its holder (the shareholder) to an equal claim on the companys profits and an equal obligation for the companys debts and losses. Two major types of shares are (1) ordinary shares (common stock), which entitle the shareholder to share in the earnings of the company as and when they occur, and to vote at the companys annual general meetings and other official meetings, and (2) preference shares (preferred stock) which entitle the shareholder to a fixed periodic income (interest) but generally do not give him or her voting rights.

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