Addis Ababa · Tuesday, 3 November 2026

Stock Market Basics · Lesson 1 of 10

What is a share?

Shares, owners, dividends and why a company would sell part of itself.

5 minutes · 7 questions
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Lesson 1 · Card 1 of 4

A share is a slice of a company

A company can be divided into equal slices called shares. If a company has 1,000,000 shares and you own 10,000 of them, you own 1 percent of the company.

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A share is a slice of a company

A company can be divided into equal slices called shares. If a company has 1,000,000 shares and you own 10,000 of them, you own 1 percent of the company.

Why companies sell shares

Selling shares is a way to raise money for growth without borrowing it. The people who buy become part-owners and share in the company's success, and in its risks.

How shareholders can earn

There are two ways. The company can pay out part of its profit as a dividend. Or you can sell your share later for more than you paid. Neither is guaranteed, and a share can also fall in value.

Owner or lender?

A shareholder owns part of the company. A lender, such as a depositor or bondholder, is owed money. If a company fails, lenders are generally paid before shareholders.