What is a Stock (or) Share?

Stock (or) Share:

Share (or) stock is a single component value of total company assets value.


Company/business assets are divided into units. Each unit can be called as a “stock” or “share”.

For Example:

To start an IT business or Company, business owner (Entrepreneur) needs money (Capital).  This money will help business owner to buy building materials, inventory (Computers, desks, furniture’s, raw materials) to run a business.

Let’s assume, company total assets value is 2 million dollars now and company is running out of cash to run a company. (Example:  Paying employees, taxes, monthly expenses etc).

However, company decided to convert 1 milion dollar asset value into 1 million shares (Each share value is $1).

In this example, each one dollar share value is single component of company total assets value.