Published on: 2026-01-09
A share is a single unit that represents part ownership in a company. Its price moves up or down based on how the market views that company’s future. Good news can lift share prices, while uncertainty can push them lower.
Because these price changes happen every trading day, shares are the foundation of stock market activity.
In trading terms, a share represents one unit of equity ownership in a publicly listed company. Public means the company allows its shares to be traded on a stock exchange. Every share gives the holder proportional exposure to the company’s profits, losses, and market value, although voting rights and dividends depend on the share class.
Traders see shares quoted by ticker symbol and price on trading platforms. Prices move throughout market hours as buyers and sellers react to news, earnings, and wider market conditions. Short-term traders focus on price movement and liquidity, while longer-term investors focus on business performance and growth.
Apple Inc. (AAPL): One Apple share represents part ownership in Apple and moves based on its business performance and market expectations.
Microsoft Corp. (MSFT): A Microsoft share reflects ownership in the company’s software, cloud, and services business.
Tesla Inc. (TSLA): A Tesla share gives exposure to how the market values the company’s electric vehicle and energy operations.
HSBC Holdings plc (HSBA): An HSBC share represents ownership in one of the world’s largest banking groups.
Unilever PLC (ULVR): A Unilever share reflects ownership in a global consumer goods business selling everyday products.
Share prices move because markets constantly reassess value based on new information.
Key drivers include:
Company results: Strong earnings often support higher share prices, while weak results can push them lower.
Economic conditions: Inflation, growth, and employment data affect expectations for company profits.
Interest rates: Higher rates can reduce the appeal of shares by increasing borrowing costs.
Market sentiment: Fear and confidence can move prices even without company-specific news.
When expectations improve, share prices tend to rise. When uncertainty increases, prices often fall.
Shares play a direct role in how smoothly a trade is executed after you place an order. Shares of large, widely traded companies usually have high trading volume, meaning many buyers and sellers are active across nearby price levels. This depth of trading makes it more likely that orders are filled quickly and close to the intended price.
Shares of smaller or less frequently traded companies often have lower trading volume. With fewer buyers and sellers available, prices can move in larger steps, and trades may be executed at less favorable prices than expected. This makes short-term trading more uncertain and increases the risk of sudden losses.
Timing is also critical. Share prices often react sharply around earnings reports, profit warnings, or major announcements. These fast moves can widen price gaps and raise trading costs.
Understanding how liquid a share is and when major events are scheduled helps traders avoid poor fills and unexpected losses.
Imagine a company is divided into many equal parts called shares. Each share is priced at $20, based on what buyers and sellers think the company is worth. When you buy 25 shares, you are buying 25 small pieces of that company, for a total cost of $500.
If the company’s outlook improves and more people want to own it, each share may rise to $22. Your 25 shares are now worth $550, not because you own more shares, but because each share is valued higher.
If confidence in the company weakens and the share price falls to $18, those same 25 shares are now worth $450. You still own the same part of the company. What changed is how the market values that ownership.
Buying shares without understanding the company.
Chasing prices after sharp moves.
Ignoring earnings dates and key announcements.
Putting too much capital into one share.
Letting emotions replace a clear plan.
These mistakes often increase risk and reduce consistency.
Before buying or selling a share, traders often check:
The price chart for trend and recent volatility.
Trading volume to judge liquidity.
Upcoming news, such as earnings dates.
Overall market direction to analyse if conditions support the trade.
Checking these basics helps avoid unnecessary surprises.
A stock and a share are closely connected but describe ownership at different levels. Stock is the general term for ownership in a company or across several companies, while a share is a single, specific unit of that ownership in one company.
For example, you might say you invest in stocks overall, but you own 50 shares of a particular company. In everyday market language, the terms are often used interchangeably, and the intended meaning is usually clear from context.
Bid-ask spread: The gap between the price buyers are willing to pay for a share, and the price sellers are willing to accept.
FTSE 100: An index that tracks the share prices of 100 of the largest companies listed on the London Stock Exchange.
Stock: General ownership in a company or group of companies.
Share price: The current market value of one share, determined by buying and selling activity.
Slippage: The difference between the expected price of a share trade and the actual price at which it is executed.
Owning a share means you own a small, defined part of a company and are exposed to how that company is valued by the market. As the company’s prospects improve or worsen, the value of your share changes. In some cases, shares may also provide dividends, but ownership and price movement are the core features.
A share price is determined by supply and demand in the market, based on what buyers are willing to pay and sellers are willing to accept. This demand is influenced by company performance, future expectations, economic conditions, and investor sentiment. The price can change many times during a single trading day.
Buying one share gives you the same basic ownership rights as buying many shares, just in a smaller proportion. The difference is scale, because gains, losses, and any dividends are directly linked to how many shares you own. The way a share’s price moves in the market is independent of your position size.
Shares can move even without obvious news because markets are always adjusting expectations. Changes in interest rates, overall market mood, or movements in related sectors can affect how investors value a company. Not all price movement is tied to headlines.
Shares represent direct ownership in a company, unlike instruments that track prices or baskets of assets. This means their value is closely tied to the company’s results, outlook, and long-term business health.
A share is a single unit of ownership in a company and the foundation of stock market trading. Share prices move with company performance, economic conditions, and market sentiment. Used carefully, shares offer clear opportunities. Ignoring risk, timing, or information can quickly lead to losses.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.
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