Duhaime's Law Dictionary


Share Definition:

A portion of a for-profit corporation bought by cash.

Related Terms: Stock, Shareholder, Shareholder agreement, Securities, Company, Corporation, Par Value Shares, Bond

Also known as stock.

The buyer may ask for a certificate, the certificate constituting proof of share ownership.

Persons owning shares in a corporation are called shareholders.

There are two basic kinds of shares: common and preferred.

A shareholder is not liable for the debts or other obligations of the corporation except to the extent of any commitment made to buy shares.

The two other benefits of shares include a right to participate in profits (through dividends) and the right to share the residue of assets of the corporation, once liabilities have been paid off, if the corporation is ever wound-up or otherwise dissolved.

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