What does a share represent in a company?

A share in a company represents an ownership interest in that company, which can be quantifiably measured by a sum of money. When an individual or entity purchases shares, they are essentially buying a piece of the company, and their ownership is reflected in their shareholding. This ownership can also translate into certain rights, such as voting and dividends, but fundamentally, the monetary value associated with the share signifies an interest in the company's assets and profits.

In contrast, a share is not a debt obligation; rather, it represents equity ownership. It is also incorrect to define a share as solely a voting right because shares confer more rights than just voting. Additionally, while owning shares may involve contractual agreements, such as the terms laid out in a company's articles of association or shareholder agreements, the concept of a share fundamentally lies in its role as a measure of ownership and financial interest in a company, rather than being just a contract. Therefore, recognizing a share as an interest measured by a sum of money captures its essence accurately.