What is a share in a business defined as?

A share in a business is defined as an ownership part of a business' capital. This means that when someone owns a share, they are effectively owning a small portion of that company, which entitles them to a claim on its assets and earnings. Shares represent equity in the company, giving shareholders a stake in its performance and potential profits.

When a company issues shares, it allows individuals or institutions to invest, facilitating the company’s growth and expansion by raising capital from investors. Each share represents a fraction of the company's total value, and shareholders often have certain rights, such as voting on corporate matters and receiving dividends.

The definition aligns well with the fundamental principle of equity financing, where companies raise money by selling ownership stakes to investors, which directly contributes to the business's overall market capitalization.