Investing in Shares, Dealing in Shares.

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In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself.

A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning they either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share. Voting and Non-Voting shares are also known as Class A and B shares.

In financial markets, stock is the capital raised by a corporation through the issuance and distribution of shares. A person or organization which holds at least a partial share of stocks is called a shareholder. The aggregate value of a corporation's issued shares is its market capitalization.

In the United Kingdom, South Africa and Australia, the term share is used the same way, but stocks there refer to either a completely different financial instrument, the bond, or more widely to all kinds of marketable securities.

A standard unit of account is used to rank different organizations, activities, and goods and services, using a single standard. In modern economies, money in the form of currency serves the role as a standard unit of account with respect to all market activity. It allows for the price of goods and services to be comparable.

In Accounting, a standard unit of account allows for the ranking of the economic status of different organizations and activities. This serves to allocate scarce resources in a way most beneficial to an economy. The use of a unit of account in financial accounting allows investors to invest capital into those companies that provide the highest rates of return. The use of a unit of account in managerial accounting enables firms able to choose between activities that yield the highest profit.

In Economics, a standard unit of account is used for statistical purposes to describe economic activity. Indexes such as GDP and the CPI are so broad in their scope that compiling them would be impossible without a standard unit of account. After being compiled, these figures are often used to guide governmental policy; especially monetary and fiscal policy.

In calculating the Opportunity Cost of a policy, a standard unit of account allows for the creation of a composite good. A composite good is a theoretical abstraction that represents an aggregation of all other opportunities that are not realized by the first good. It allows an economic decision's benefits to be weighed against the costs of all other possible goods in that society, without having to refer to any directly. Often, this is most easily accomplished with money.

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