Share

A share of a stock or a mutual fund is a unit of ownership in an investment. Shares are a type of financial asset that some businesses use to guarantee an equitable dividend distribution of any declared residual profits. A stock with no dividend payments does not distribute its income to its shareholders. Instead, shareholders look forward to a rise in the stock price as business profits increase. There are two primary kinds of shares: common shares and preferred shares. The terms shares and stock are frequently used interchangeably.