Exactly, how big is a "share" of stock? Is it a defined variable, or does it depend on the stock you are talking about?
2007-02-08 13:01:08 · 4 answers · asked by Triple Nipple 1 in Business & Finance ➔ Investing
What do you mean by "big"? Value or total ownership?
A share of stock is a piece of paper that shows ownership of a corporation. When a corporation is organized they designate the number of shares that are authorized and then they start to issued the stock, but usually not all the authorized shares.
The value of a share depends on how many shares have been issued and what the company owns of value (net of what they owe).
For instance, if the company only has one share issued and the only asset is cash of $1000 (no liabilities), then the share is worth $1000. If the company has issued 1000 shares then the share is worth $1.
2007-02-08 13:09:30 · answer #1 · answered by Nusha 5 · 0⤊ 0⤋
Share or stock, same difference. The terms don't matter in the market. What matters is the value of a stock. A share is what gives you ownership of a company. You can buy stocks of publicly traded companies in the stock market or you could own shares in a private company if you are one of it's owners or founders that contributed some capital/equity towards the company.
2007-02-08 13:11:15 · answer #2 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
A share is one unit that you buy for $x. It varies depending on the company.
For instance, a share for Hormel costs $59.00, and Yahoo! costs $18.00. (The numbers are made up, but you get the picture).
Using the above as an example, when you purchase shares, the lower the price the more shares you have. In the long run, when they gain value you make more money.
2007-02-08 13:07:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Not sure.
I thought a stock was American term, and share is the Australian term.
That is, in Australia we call them shares, in the US stocks!
2007-02-08 13:06:02 · answer #4 · answered by Anonymous · 0⤊ 2⤋