share

In finance, that part of the capital of a company held by a member (shareholder). Shares may be numbered and are issued as units of definite face value; shareholders are not always called on to pay the full face value of their shares, though they bind themselves to do so.

The shares of a public limited company are tradable on a stock exchange. If there are 100 million shares in circulation and the share price is 2, then the capital or value of a company at that point in time is 200 million.

Preference shares carry a fixed rate of dividend and have first claim on the profits of the company;ordinary shares have second claim, and if profits have been good may attract a higher dividend than the preference shares;deferred shares rank for dividend only after the rights of preference and ordinary shareholders have been satisfied. Fully paid‐up shares can be converted by the company into stock. In 1988 20.5% of the population over 16 in the UK owned shares, 25% in the USA, and 23% in Japan.

In 1993, shareholders in the UK received 4.9% of national income, up from 2.6% in 1984.