Is my understanding of what share is correct?


I just started learning about shares and trading about 2 weeks ago. Was wondering if the following is correct.

What is a share?

First we need to understand what equity is. Equity is the amount of money that a company(or any owner of an asset) would have after selling the company(or asset).

Share Capital(or Capital Stock) is the portion of the equity of a company that is made up by dividing this portion of equity into many pieces and putting a price on those pieces.

These pieces are referred to as shares. Therefore, a share is a unit(just as meter is a unit of measurement) of the Share Capital. In other words, a share is a unit of equity in the Share Capital.


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