A share is a single unit of ownership in a corporation, mutual fund, or any other organization. A joint stock company divides its capital into issuing shares, which are offered for sale to raise capital. A share is thus an indivisible unit of capital, expressing the proprietary relationship between the company and the shareholder. The denominated value of a share is its face value, as calculated by dividing the total capital of a company by the total number of shares.
Shares are valued according to various principles in different markets, but a basic premise is that a share is worth the price at which a transaction would be likely to occur were the shares to be sold. The liquidity of markets is a major consideration as to whether a share is able to be sold at any given time. An actual sale transaction of shares between buyer and seller is usually considered to provide the best prima facie market indicator as to the "true value" of shares at that particular time.
20% to 50%
Equity method in accounting is the process of treating equity investments, usually 20% to 50%, in associate companies. The investor keeps such equities as an asset. The investor's proportional share of the associate company's net income increases the investment (and a net loss decreases the investment), and proportional payment of dividends decreases it. In the investor's income statement, the proportional share of the investee's net income or net loss is reported as a single-line item.
More Than 50%
The ownership of more than 50% of voting stock creates a subsidiary. Its financial statements consolidate into the parent's financial statements.
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases, it is a government or state-owned enterprise. The controlling entity is called its parent company, parent, or holding company.
An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity, locomotives, and rolling stock. In contrast, a non-operating subsidiary would exist on paper only (i.e. stocks, bonds, articles of incorporation) and would use the identity and rolling stock of the parent company.
Less Than 20%
The ownership of less than 20% creates an investment position carried at historic book or fair market value (if available for sale or held for trading) in the investor's balance sheet .
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Dow Jones Industrial Average
The DJIA depicts the volume of shares traded over a specific period of time.