What a share is, the rights it carries, and how share classes work.
Business · Updated July 2026 · 6 min read
A share is a unit of ownership in a corporation. Owning shares makes a person a shareholder, with a defined bundle of rights in the corporation — but not direct ownership of the corporation's assets, which belong to the corporation itself.
At its most basic, a share carries three kinds of right: the right to vote at shareholder meetings, the right to receive dividends when the directors declare them, and the right to receive a share of what is left over if the corporation is wound up. A corporation's simplest structure gives every share all three rights equally.
The articles of incorporation set out the classes of shares the corporation is authorised to issue, and sometimes a maximum number. Issued shares are those the corporation has actually given out to shareholders. A corporation can be authorised to issue far more shares than it has issued, leaving room to bring in new investors later.
A corporation can create different classes of shares carrying different rights. Common shares usually carry votes and share in growth; preferred shares often give a fixed dividend and priority on a wind-up but limited or no votes. Splitting rights across classes lets a corporation raise money from investors while founders keep control, or reward different owners in different ways.
Canadian corporations generally issue shares without a par, or face, value. Instead the price is whatever the corporation and the shareholder agree, and the money received is recorded in the corporation's stated capital account for that class.
This guide is general legal information, not legal advice. For a specific matter, consult a lawyer licensed in your jurisdiction.