Share Law and Legal Definition

Share is a term subject to different meanings. It may refer to a portion of a benefit from a trust, estate, claim or business, either equally or in a fractional division with others. In the context of corporate law, a share represents a portion of ownership interest in a corporation, represented by a stock certificate stating the number of shares of an issue of the corporation's stock.

The shares held by individuals in corporations is generally considered as personal property. Shares of stocks may come in different types, such as common, Class A, and preferred A class of stock, such as Class A, Class B, etc., is category of stock where each stock share has the same voting rights, value, and characteristics. Preferred stock is a security representing a prior claim to common stock on the firm's earnings and assets. Preferred stockholders normally forgo voting rights and receive a fixed dividend that takes precedence over payment of dividends to common stockholders.