Tuesday, December 28, 2010

Shares

Shares, or equities, represent an ownership stake in a company. An investor who holds shares in a company has an ownership interest in that company, and is therefore entitled to vote, receive dividends and other distributions, and share in the residual value of the equity in the company (assets less any liabilities). Shares are a common asset class in managed fund investing because of the long term growth prospects that they offer, which is consistent with investor goals of long term wealth creation and retirement saving. Mutual funds generally invest in publicly traded shares that are listed on a stock exchange.

Synonyms: Stocks, Equities, Common stock, Ordinary shares

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