What is a share?

A share is proof of participation (ownership) in the capital of a company, which represents an economic ownership right in an enterprise.

Shareholders provide risk-bearing capital to the enterprise in the form of equity and in return receive voting rights and the right to a dividend. This dividend is paid out from the profit after deduction of obligations, with a portion often being reinvested in the enterprise.

Shares can be transferable and are then called securities, tradable on financial markets such as stock exchanges. There are various types of shares, such as bearer shares, registered shares, ordinary shares, preference shares, and various mixed forms.