Module 1 — Foundations
What a share actually is
4 minute read
In plain English
A share is a small ownership slice of a company. If a company is divided into 100 million shares and you own 100, you own 100 millionths of it.
Why it matters
Everything else — price, volume, volatility — is people disagreeing about what that slice is worth right now.
Example
A company worth $500 million with 100 million shares works out at $5 per share. If the market decides it is worth $600 million, the same share is $6.
Try this
Look up any ticker on the Radar and read its market capitalisation and share count. Check that the maths roughly agrees.
Common mistake
Thinking a $2 stock is 'cheaper' than a $200 stock. Price per share says nothing about value without the share count.
What this does not mean
Owning a share does not entitle you to a price rise, a dividend, or any return at all.
Educational content only. Not financial advice.