digplanet beta 1: Athena
Share digplanet:


Applied sciences






















"Shares" redirects here. For other uses, see Share (disambiguation).

In financial markets, a share is a unit of account for various investments. It often means the stock of a corporation, but is also used for collective investments such as mutual funds, limited partnerships, and real estate investment trusts.[1]

A corporation divides its capital into shares, which are offered for sale to raise capital, termed as issuing shares. Thus, a share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value: the total capital of a company is divided into a number of shares.[2]

The income received from shares is known as a dividend. A shareholder, also known as a stockholder, is a person who owns shares of a certain company or organization.[3] The process of purchasing and selling shares often involves going through a stockbroker as a middle man.[4]


Shares are valued according to various principles in different markets, but a basic premise is that a share is worth the price at which a transaction would be likely to occur were the shares to be sold. The liquidity of markets is a major consideration as to whether a share is able to be sold at any given time. An actual sale transaction of shares between buyer and seller is usually considered to provide the best prima facie market indicator as to the "true value" of shares at that particular time.


  • Shares outstanding are those that are authorized, issued, and held by third parties. The number of shares outstanding times the share price gives the market capitalization of the company, which if the trading price held constant would be sufficient to purchase the company.
  • Treasury shares are authorized, issued, and held by the company itself.
  • Issued shares is the sum of shares outstanding and treasury shares.
  • Shares authorized include both issued (by the Board of Directors or shareholders) and unissued but authorized by the company's constitutional documents.

Tax treatment[edit]

Tax treatment of dividends varies from territories to territories. For instance, in India, dividends are tax free in the hands of the shareholder, but the company paying the dividend has to pay dividend distribution tax at 12.5%. There is also the concept of a deemed dividend, which is not tax free. Further, Indian tax laws include provisions to stop dividend stripping.[5][citation needed]

Stock certificates[edit]

Historically, investors were given stock certificates as evidence of their ownership of shares. In modern times, certificates are not always given and ownership may be recorded electronically by a system such as CREST.

See also[edit]


  1. ^ "Shares Definition". Investopedia. Retrieved 2013-07-09. 
  2. ^ "Chapter 22 Company-An Introduction". Accountancy. Noida, Uttar Pradesh, India: National Institute of Open Schooling. 2008. p. 242. Retrieved 24 August 2011. 
  3. ^ Hoang, Paul (2007). "1.4 Stakeholders". Business and Management. Victoria: IBID Press. p. 71. ISBN 1-876659-63-7. 
  4. ^ "How to Buy Shares". ShareWorld. Retrieved 23 February 2012. 
  5. ^ "All about shares and tax". Rediff India Abroad. 16 January 2006. Retrieved 23 February 2012. 

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Share_(finance) — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
1000000 videos foundNext > 

How Combined Leverage Brings Together Operating Income & Earnings Per Share : Finance FAQs

Subscribe Now: http://www.youtube.com/subscription_center?add_user=Ehowfinance Watch More: http://www.youtube.com/Ehowfinance Combined leverage brings togeth...

EPS Earnings Per Share Explained in 11 minutes - Financial Ratio Analysis Tutorial

Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. No wonder others goin crazy sharing this??? Share it with your other friends too...

Dividends and Share Repo Corporate Finance CFA Level 2

Dividends and Share Repo Corp Fin CFA L2 Our Website: http://qcfinance.in/ Check out: http://qcfinance.in/cfa-level-2/ http://qcfinance.in/frm-part-ii-comple...

Britam's Share In Housing Finance To Rise To 46%

British American investment company -- Britam-Kenya has announced plans to buy the entire 24.7 percent stake in mortgage provider Housing Finance held by Equ...

Academy of Finance students share winning impressions of FIU Business.

Over 400 high school juniors from the 14 Miami-Dade County Public Schools that operate Academies of Finance visited the College of Business at Florida Intern...

CFA Level I Corporate Finance: R39 - Dividends and Share Repurchases:Basics

This is a short video of our CFA Level I Corporate Finance: R39 -- Dividends and Share Repurchases class recording from Quartic Training. Quartic Training is...

Share Premium Accounts vs. Paid in Capital : Understanding Finance & Accounting

Subscribe Now: http://www.youtube.com/subscription_center?add_user=ehowfinance Watch More: http://www.youtube.com/ehowfinance Share premium accounts are usua...

Big Share draws mktg & finance together; How CMOs should change (RBDR--7/22/14)

RBDR is sponsored this week by Research Now, with the industry's most comprehensive mobile research platform, ideally suited for custom qualitative and quant...

Share experiences and challenges - Daniel Mavindu, Rafiki Micro-finance Bank

Finance & Investment Tips : What Is a Dividends Per Share?

Dividends per share is a stock term and refers to stocks offered by companies to the investment public in the hopes the investor can make more money than ori...

1000000 videos foundNext > 

3 news items

London South East
Tue, 19 Aug 2014 06:52:30 -0700

LONDON (Alliance News) - Prudential PLC has consolidated its top ranking position for US variable individual annuity sales in the first six months of the year, according to a league table published by LIMRA Secure Retirement Institute. Prudential's ...
London South East
Thu, 14 Aug 2014 07:15:00 -0700

LONDON (Alliance News) - Asda Ltd, owned by US retail giant Wal-Mart Stores Inc, said it saw sales and market share increase in the second quarter of its financial year. Asda, Britain's second largest supermarket chain, said like-for-like sales rose 0 ...
London South East
Wed, 13 Aug 2014 02:33:45 -0700

LONDON (Alliance News) - Treveria PLC Wednesday said it will distribute 1.50 euro cents per share to its shareholders, financed from the distributable reserve created by the cancellation in 2007 of the share premium account which had arisen on the ...

Oops, we seem to be having trouble contacting Twitter

Talk About Share (finance)

You can talk about Share (finance) with people all over the world in our discussions.

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!