The Full Wiki

Share (finance): Wikis


Note: Many of our articles have direct quotes from sources you can cite, within the Wikipedia article! This article doesn't yet, but we're working on it! See more info or our list of citable articles.


From Wikipedia, the free encyclopedia

Vereinigte Ostindische Compagnie bond.jpg

Investment Fund
Structured finance
Agency securities

Bond market
Stock market
Futures market
Foreign exchange market
Commodity market
Spot market
Over-the-counter Market (OTC)

Bonds by coupon
Fixed rate bond
Floating rate note
Zero-coupon bond
Inflation-indexed bond
Commercial paper
Perpetual bond

Bonds by issuer
Corporate bond
Government bond
Municipal bond
Sovereign bonds

Equities (Stocks)
Short Selling

Investment Funds
Mutual fund
Index Fund
Exchange-traded fund (ETF)
Closed-end fund
Segregated fund
Hedge fund

Structured finance
Asset-backed security
Mortgage-backed security
Commercial mortgage-backed security
Residential mortgage-backed security

Collateralized debt obligation
Collateralized fund obligation
Collateralized mortgage obligation

Credit-linked note
Unsecured bond
Agency Securities

Credit Derivatives
Hybrid Securities

[Template:Securities&action=edit edit this box]

In financial markets, a share is a unit of account for various financial instruments including stocks (ordinary or preferential), and investments in limited partnerships, and REITs. The common feature of all these is equity participation (limited in the case of preference shares).

The term stocks in the plural is often used as a synonym for shares.[1] Traditionalist demands that the plural stocks be used only when referring to stock of more than one company are rarely heard nowadays.


Shareholders and dividends

The income received from shares is called a dividend, and a person owning shares is called a shareholder. This is usually in a large and medium sized business but not necessary in a small business which is more focused on trying to survive.


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 moment.

Tax treatment

Tax treatment of dividends varies between 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.

Share certificates

A share entitling to 1/8 of the Stora Kopparberg copper mine in Sweden dates back from 1288. The first share company in the world

Investors were given share certificates as evidence of their ownership of shares but certificates are not always issued nowadays. Instead, the ownership may be recorded electronically by a system such as CREST.

See also


  1. ^ Compact Oxford English Dictionary [1]

External links


Simple English

In finance, a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself.

Other websites


Got something to say? Make a comment.
Your name
Your email address