Legal Definitions - American share

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.