Share

SHAIR /ʃɛər/
nounB1TOEFLIELTS
FormalBusiness

A unit of ownership in a company or financial asset.

While 'share' can refer to a portion of anything, in finance, it specifically denotes a unit of ownership in a corporation, often traded on a stock exchange.

The story behind the word. The word 'share' comes from the Old English 'scearu', meaning 'a part, a division, a cutting'. It's related to the verb 'to shear', meaning to cut or divide. In the financial sense, it literally means a 'part' or 'division' of a company's ownership, reflecting how a company's capital is divided into smaller units.

Word relationships

  • Stock: Often used interchangeably with 'share', but 'stock' can also refer to the total capital raised by a company through shares, or a type of security.
  • Equity: Refers to the overall value of ownership, whereas 'share' is a single unit.

Commonly confused with

  • Bond: A 'share' represents ownership, while a 'bond' represents a loan.

Word family

  • Shareholder (noun): An owner of shares in a company.
  • Shared (adjective): Owned or experienced by more than one person.

Collocations

  • share price
  • buy shares
  • sell shares
  • common share
  • preferred share

Example sentences

  • "She decided to buy 100 shares in the new tech startup, hoping for future growth." Investing in a company
  • "The company's share price surged after announcing record quarterly earnings." Market reporting
  • "The Dutch East India Company was one of the first to issue shares to the public in the early 17th century." Historical context of stock markets

Memory hook

Think of a 'share' as a 'slice' of a company's 'pie' – you own a small part of the whole. Slice of pie

When not to use

Do not use 'share' when referring to a loan (use 'bond') or the overall value of ownership (use 'equity').

Fun facts

  • The first modern stock exchange was established in Amsterdam in 1602, primarily to trade shares of the Dutch East India Company.

Related words

Equity, Dividend, IPO

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