Question

What does a share of stock represent?

Short answer

The equity ownership of a company The total number of shares that a business can issue is represented by this text.

Step-by-step solution

Step 1. Concept of stock

Stock is a collection of shares. two types of shares equity shares preference shares.

Step 2. Explanation

The term "share" refers to the division of a company's equity into units. The number of units owned determines the percentage of business. The corporation's charter allows it to raise capital by issuing a specific number of shares. As a result, stock of shares refers to the entire number of shares allowed to raise funds.