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What are shares?

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As discussed in chapter 1, shareholders are the owners of a company and, as the name suggests, a share is one unit of ownership. This means that someone with 10 000 shares owns a 10 times greater slice than someone with 1000 shares. As part‐owners, shareholders are entitled to a share of the assets and profits of the business. They're also entitled to other benefits of ownership in a business enterprise, including having a say in the management of the business by attending annual general meetings (AGMs), asking questions and voting. Because a shareholder has equity in the business, shares are also called equities.


‘Whoopee! I'm now a part owner of ACME LTD.’

Starting With Shares

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