Math for Non-Math Majors

study guides for every class

that actually explain what's on your next test

Shares

from class:

Math for Non-Math Majors

Definition

Shares represent ownership units in a company or financial asset. Owning shares entitles the shareholder to a portion of the company's profits and assets.

congrats on reading the definition of shares. now let's actually learn it.

ok, let's learn stuff

5 Must Know Facts For Your Next Test

  1. Shares can be bought and sold on stock exchanges.
  2. There are different types of shares, such as common and preferred shares.
  3. Share prices fluctuate based on supply, demand, and company performance.
  4. Dividends may be paid to shareholders as a distribution of profits.
  5. Owning shares grants voting rights in company decisions for common shareholders.

Review Questions

  • What are some key differences between common and preferred shares?
  • Why do share prices fluctuate over time?
  • How do shareholders benefit from owning shares in a company?
ยฉ 2024 Fiveable Inc. All rights reserved.
APยฎ and SATยฎ are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Glossary
Guides