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Simple English definitions for legal terms
American share
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A quick definition of American share:
An American share is a type of stock in a company that is owned by people in the United States. When a company is formed, its capital stock is divided into equal parts called shares. Owning a share means you have a part of the company and can make money if the company does well. Sometimes, people buy shares in a company so they can become a director.
A more thorough explanation:
Definition: American share refers to a share of stock in a foreign corporation that is issued directly to U.S. investors through a transfer agent. It is one of the equal parts into which the capital stock of a corporation or joint-stock company is divided, representing an equity or ownership interest in the company.
Example: If a U.S. investor buys an American share of a foreign corporation, they become a part-owner of that company and are entitled to a portion of its profits and assets. For instance, if a company has 100 shares of stock and an investor buys 10 shares, they own 10% of the company.
This example illustrates how American shares work and how they represent a portion of ownership in a foreign corporation. It also shows how the number of shares an investor owns determines their percentage of ownership in the company.
American rule | American Society of Composers, Authors, and Publishers