Business, Legal & Accounting Glossary

Definition: Shares


Quick Summary of Shares

The amount of share capital held by any shareholder is measured in terms of a number of shares in the total capital of the company.

Full Definition of Shares

Share is a type of security that stands for possession in a corporation. The term acts a claim on that specific corporation’s profits and assets. Ownership in a corporation is calculated by the number of shares that an individual owns in that specific company. For example, if a corporation has a total of 500 shares and an individual owns 25 shares, it is deemed that the person owns 5% of the corporation. Shares are also known in common usage as stocks or equity.

Shares are classified into two types: preferred and common. Common shares give holders of shares the right to receive monetary dividends and also the right to vote during shareholders’ meetings. Preferred stocks enable the holders to a greater claim on earnings and assets as compared to common shares. This type of share or equity generally does not provide the holder of security with voting rights.

Stock Index

A stock index is the market prices of a particular stock group. Nasdaq composite index and S&P 500 are two common examples of stock index.

Corporate Stock

Corporate stock is a financial instrument that denotes an ownership position in a specific company. This stock signifies a claim on its proportional equity in the company’s profits and assets. The principal characteristic of corporate stock is that earnings of stockholders are secondary to the claim that the company’s debtors have on its earnings and assets. Corporate stock is also known as equity securities.

Debenture Stock

Debenture stock is share that is issued in accordance with a contract to pay particular monetary amounts at specified time intervals.

Watered Stock

Watered stock is a type of stock that signifies ownership of a corporation whose total value is lower than its capital investment.

Synthetic Stock

It denotes the artificial existence of an asset that is the compound of other assets. An example of an artificial stock is the combination of a long put option and a short call option (synthetic short stock) or a long call option and a short put option (synthetic long stock).

Examples of Shares in a sentence

Unfortunately Share prices continued their downward trend.
The share price will likely be determined by the bidding activities of institutional investors.
Speculation centred around a likely bid price of 410p a share.

Synonyms For Shares

share, stock, equity, stockholder

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Shares. Payroll & Accounting Heaven Ltd.
January 26, 2022
Chicago Manual of Style (CMS):
Shares. Payroll & Accounting Heaven Ltd. (accessed: January 26, 2022).
American Psychological Association (APA):
Shares. Retrieved January 26, 2022
, from website:

Definition Sources

Definitions for Shares are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 20 Views.