Shares are units of equity ownership interest in a corporation that exist as a financial asset providing for an equal distribution in any residual profits, if any are declared, in the form of dividends. Shareholders may also enjoy capital gains if the value of the company rises.

Shares represent equity stock in a firm, with the two main types of shares being common shares and preferred shares. As a result, “shares” and “stock” are commonly used interchangeably.

Example of Shares Investors Buy Shares Online of companies that they believe will grow and hope to capture some of those capital gains as investors. As the 10-year bull market that began following the 2008 financial crisis stretched on, shares of companies continually reached new highs through 2019.