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ERP Internals/Glossary/Share

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Part ownership of a corporation. Often, there are millions of shares and tens of thousands of shareholders. Shares pay dividends and are divided into two classes: preferred and common. Preferred shares are guaranteed a dividend but generally don't have the right to vote. Stock splits can be declared when the share price has grown too large. Each old share is replaced by two, three, or more new shares of lesser value.