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Education·9 April 2026·4 min read

What is a share — and what is a dividend

A share is a tiny piece of a company. If the company does well, it can pay you part of the profit: the dividend.

What is a share — and what is a dividend
Image: domeniu public · Wikimedia Commons

When you buy a share, you become owner of a tiny piece of a company. If the company grows, the share's value can rise. If it goes bankrupt, you can lose what you put in.

The dividend — your slice of the profit

Some companies share part of the profit with shareholders, as a dividend. It's like periodically receiving a slice of the success of the business you partly own. But there's no risk-free share — which is why education matters.