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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