What is a Share of Stock? Definition, Types, Fractional Shares

What Is a Share of a Stock?

By Matthew Frankel, CFP – Updated Apr 17, 2025 at 12:34 AM

Key Points

Owning a share means holding an ownership unit in a company, impacting dividends and voting rights.
Investors can access shares of public companies via the stock market or participate in private IPOs.
Common stock grants equity with potential voting rights; preferred stock offers fixed dividends without them.

If you own a share of stock in a company, it means that you own an economic interest in the underlying business. But there's more to the story than that. Here's a rundown of what a share of stock is, and what investors should know about how shares of stock work.

Zoomed in picture of a stock certificate. — Image Source: Getty Images

Loading paragraph...

Related investing topics

How to Invest in Stocks: 5 Steps to Get Started

Are you ready to jump into the stock market? We've got you. Build long-term wealth using The Motley Fool's market-beating method.

Industries That Thrive During Recessions

Some industries do well when the economy goes south. Here's how to recession-proof your portfolio.

What You Need to Know About Active vs. Passive Investing

Some don't want to get in the weeds of investing, but others do. Each approach has its own investment style.

How Bonds Work & How to Invest in Them

Bonds are often considered a "safe" investment, but are they right for you?

Loading paragraph...

About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Matt Frankel has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.