SHARE

A portion of a company bought by a transfer of cash in exchange for a certificate, the certificate constituting proof of share ownership. Persons owning shares in a company 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 company 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 company , once liabilities have been paid off, if it is ever dissolved.