Slices of pie. When you hear "shares," think: common stock. (See: Preferred Shares. See: Preferred Stock.)
You buy a share. Of stock. If a company has 10 million shares of stock and you own a million, you own 10% of the company; you get 10% of the vote for the board of directors. Welcome to America.
Related or Semi-related Video
Finance: What is a primary offering, and...29 Views
finance a la shmoop what is a primary offering and what are primary shares all
right people let's start with the primary offering it's pretty much just
an IPO or initial public offering of stock that's primary and hello 1933 Act [The 1933 securites act is slid onto a desk]
that's what gave rise to all the regulations around primary offerings its
original shares virgin ones in fact now being offered for the first time to an [Someone holding 'extra virgin stock']
investor public primary offering that's what it is
but primary shares also come from private companies like a venture capital [Sign for a venture capital company]
company might buy primary shares in a b round from whatever.com as that company
funds its growth now once a company is already public its shares will have
traded back and forth in many different hands over time those would be called [Secondary shares stamp]
secondary shares and hello 1934 Act which set the regs all around
secondaries so yeah primary 1933 secondary 1934 and well that's pretty
much it as long as you can count to two this one's a pretty easy concept to
would wrap your head around.. primarily.. [Woman looks confused]
Up Next
What is Earnings Per Share (EPS)? Earnings Per Share is a metric by which to measure the profitability of a public company as a result of how much...
What rights does a public stockholder have? Common shareholders elect the board of directors. They vote. They have the right to quarterly financial...
What are shares outstanding? The total size of the pie. All of the shares outstanding comprise the total votes and value of a given company. If XYZ...