What does owning shares in a company typically confer to the shareholder?

Owning shares in a company typically grants the shareholder a claim on a portion of the company’s assets. This means that shareholders effectively own a segment of the company, and in the event of liquidation or sale of assets, they have a legal right to a portion of those assets after all debts and obligations have been addressed. Shares are essentially ownership stakes in the company, equating to a proportional claim on its resources, income, and, potentially, profits.

While shareholders may have some rights related to company governance, such as voting on significant policy changes or attending meetings, these rights do not equate to ownership of the company's assets in the same way that holding shares does. Additionally, profit is not guaranteed; dividends depend on the company’s performance and decisions made by its board of directors, meaning that shareholders do not automatically receive profit solely by virtue of ownership. The nature of the claims made through share ownership is foundational to understanding equity and finance in the context of microeconomics.