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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
One unit of stock. If you own 10 shares, you own 10 pieces of a company.
Why It Matters
Shares are how ownership gets divided up. Apple has about 15 billion shares outstanding - so if you own 100 shares, you own 100/15,000,000,000 of the company. The more shares you own, the more dividends you receive and the more your wealth grows when the stock price rises.
Key Points
- You can buy fractional shares at most brokers - own a piece of Amazon for just $5
- Outstanding shares × stock price = market cap (total company value)
- Companies can issue new shares (dilution) or buy back shares (which can boost the price)
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Common Questions
One unit of stock. If you own 10 shares, you own 10 pieces of a company. Shares are how ownership gets divided up. Apple has about 15 billion shares outstanding - so if you own 100 shares, you own 100/15,000,000,000 of the company.
Shares are how ownership gets divided up. Apple has about 15 billion shares outstanding - so if you own 100 shares, you own 100/15,000,000,000 of the company. The more shares you own, the more dividends you receive and the more your wealth grows when the stock price rises.
You can buy fractional shares at most brokers - own a piece of Amazon for just $5
Outstanding shares × stock price = market cap (total company value)
Companies can issue new shares (dilution) or buy back shares (which can boost the price)