(LifeWire) - Definition: A share of stock is simply the partial ownership of an incorporated business.
Because stocks represent ownership, the value of each share tends to rise or fall over time with the relative success and profitability of the business.
Stockholders may be paid a regular share of a business's profits, known as dividends, at the discretion of its board of directors. Stock values also tend to grow substantially as a business grows but, as owners, stockholders can lose everything if a business goes belly-up - everyone from the IRS to bondholders to common creditors stand in line to collect money first in case of a failure.
