What is a share of stock?

A share of stock represents an ownership interest in a company. That ownership interest is proportional to the number of shares that the company has issued. For example, suppose a hypothetical company has issued 50 million shares of stock. Five million of those shares would be 10% and represent 10% of the company.

Do you need to buy a whole share of a stock?

The takeaway is that if your brokerage offers fractional share investing, you don't necessarily need to buy a whole share of a stock to get an equity interest in the company. What are outstanding shares?

What is a share capital?

Share capital refers to all of the shares of an enterprise. The owner of shares in a company is a shareholder (or stockholder) of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder.

What are common shares & how do they work?

Many companies issue common stock, which is divided into shares. These are generally called common shares. These provide the purchasers—called shareholders—with a residual claim on the company and its profits, providing potential investment growth through both capital gains and dividends.