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Share

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A share is a single unit of ownership in a company or fund; owning more shares means owning a larger slice of the business.

A share is the basic unit in which ownership of a company is divided. The words share and stock are often used interchangeably, but there is a small difference: stock describes ownership in general, while a share is one specific unit of it. You might say you own stock in a company, and that your position consists of 50 shares.

Each share usually gives its owner the same rights as every other share of the same class, such as a vote at the annual meeting and an equal portion of any dividend. The value of your holding is simply the number of shares multiplied by the current share price.

Example: if a stock trades at $40 and you own 25 shares, your position is worth $1,000. If the price rises to $44, your position is worth $1,100.

Shares are not limited to companies. Mutual funds and exchange-traded funds are also divided into shares, and many brokers now let investors buy fractional shares, meaning less than one full share.

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