A type of security that represents ownership in a company/ corporation divided into equal portions that are a claim on its earnings (dividends) and assets (residual interest). More specifically, a share is the smallest division of the share capital of a company which represents a proportion of ownership of its assets and operations.

Depending on its contractual rights, a share may have many forms including common share and preferred share. Common share entitles its holders, in addition to the claim on earnings and assets, to vote in the election of management and other matters presented for decision taking at shareholders’ meeting (voting can be in person or by proxy).

Preferred share, by nature, does not entitle its holders to such voting rights but it has priority as to their claims on earnings and assets. In other words, preferred share has a prior claim on dividends as compared to common share.

In general, share refers to any type of undivided holdings in a venture, company, fund, etc. An example is a share in a mutual fund or similar investment schemes.

A share is also known as a share of stock or simply a stock.