--- title: "What is a Share? – Complete Guide | eAktiebok" url: https://eaktiebok.se/knowledge-bank/what-is-a-share description: "Learn what a share is, the different classes of shares, how share value is determined, and what shareholding means. A clear guide for business owners and…" lang: en --- Knowledge # What is a share? A share is an ownership unit in a company. When you own a share, you are a shareholder and have a claim on a portion of the company's assets and earnings. 2 min read A share is an ownership unit in a company. When you own a share, you are a shareholder and have a claim on a portion of the company's assets and earnings. Here we explain the basics of shares, share classes, share value, and shareholding. ## Shares and different classes of shares Shares represent ownership in a company. Different classes of shares may have different voting rights, dividends and other characteristics. For example, common stock usually has voting rights and receives dividends, while preferred shares may not have voting rights but receive fixed dividends. Companies can create different stock classes to meet specific needs or goals. ## Share value "Share value" usually refers to the price of a company's stock in the stock market. It can also refer to a company's total economic value represented by its share price. For unlisted companies, the value is often determined through valuations based on the company's assets, earnings and future prospects. ## Shareholding Shareholding refers to the ownership of shares in a company. Shareholders are entitled to a share of the company's profits and have the right to vote on important decisions. The size of the holding determines how much influence the owner has. ## What information is needed for shareholding? A shareholding record should contain information about the shareholder (name, personal or corporate identification number), number of shares, share class, any restrictions, and the date of acquisition. All this information should be documented in the company's share register. ## Frequently asked questions about shares ### What is the difference between common stock and preferred shares? Common stock typically provides voting rights and entitlement to dividends based on the company's performance. Preferred shares usually have priority for dividends at a fixed amount, but typically lack voting rights or have limited voting rights. ### How is the value of a share in an unlisted company determined? The value of shares in unlisted companies is usually determined through a company valuation that considers assets, liabilities, earning capacity and future prospects. There is no public market price as with listed companies. ### Do all shares in a company need to have the same voting rights? No, a company can have different share classes with different voting rights. It is common to have A-shares (higher voting power) and B-shares (lower voting power). The differences must be stated in the articles of association. Related reading Unlisted Shares in Capital Insurance: 2024 Guide (https://eaktiebok.se/blog/unlisted-shares-capital-insurance) Share LinkedIn (https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Feaktiebok.lovable.app%2Fknowledge-bank%2Fwhat-is-a-share)Facebook (https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Feaktiebok.lovable.app%2Fknowledge-bank%2Fwhat-is-a-share) ## Related articles - ### What is a Share? – A Complete Guide for Owners of Unlisted Companies What is a share? Learn about share classes, voting rights, and valuation in private companies – and why the share register is central for every owner. https://eaktiebok.se/kunskapsbank/aktie - ### Share Classes – A, B, C and Preference Shares Explained What is the difference between Class A, Class B, and preference shares? Learn how share classes are used to manage control and dividends in private companies. https://eaktiebok.se/kunskapsbank/aktieklasser - ### Preferred Shares – Liquidation Preference and the Impact on Founders What are preferred shares and how does liquidation preference work? Learn what VC investor requirements for preferred shares mean for you as a founder. https://eaktiebok.se/kunskapsbank/preferensaktier - ### Share Capital – Requirements, Increases, and Reductions What is share capital, what is the minimum requirement, and how do you increase or decrease it? A practical guide for owners and founders of private companies. https://eaktiebok.se/kunskapsbank/aktiekapital - ### Business Angels – What They Are and What They Expect Business angels invest private capital in early-stage companies. Learn what they look for, how the investment tax credit works, and what to consider as a founder. https://eaktiebok.se/kunskapsbank/affarsanglar - ### The Share Register – Your Duty as a Board Member The Companies Act requires every limited company to maintain a share register. Learn what must be included, who is responsible, and the consequences of lacking one. https://eaktiebok.se/kunskapsbank/aktiebok-din-skyldighet See all knowledge bank articles (https://eaktiebok.se/knowledge-bank) ## Ready to digitize your share register? Get started for free in minutes. No commitment, no hidden fees. Create share register for free: https://eaktiebok.se/register Book a demo: https://eaktiebok.se/book-a-demo ## We use cookies We use cookies to improve your experience and analyze traffic on our website. Learn more about cookies (https://eaktiebok.se/about-cookies) Image: Upsales pixel (https://pxl.upsales.com/pixel.gif?a=493371a3b6b24768b3afe5b43260be89&u=https%3A%2F%2Feaktiebok.lovable.app%2Fknowledge-bank%2Fwhat-is-a-share&q=undefined&r=&t=What%20is%20a%20Share%3F%20%E2%80%93%20Complete%20Guide%20%7C%20eAktiebok&__upsales_v_493371a3b6b24768b3afe5b43260be89_tracker=5d7k9cxugya000005d7k9cxugya00000&__upsales_v_493371a3b6b24768b3afe5b43260be89_session=1m02lyk28cd000001m02lyk28cd00000&b=1) ## Structured data ```json [ { "@context": "https://schema.org", "@type": "Article", "headline": "What is a Share? – Complete Guide", "description": "Learn what a share is, the different classes of shares, how share value is determined, and what shareholding means. 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