Shares

A share is like a miniature of the business.

Figure 1: The concept of the share (image taken from here).

Business Term	Share Term
Net Income	Earnings (EPS)
Equity	Book Value

Figure 2: The price to earning ratio formula (image taken from here).

In the above example, it translates to:

For every 5 dollars I spend buying this stock, I should receive 1 dollar in profit a year later.

The lower the P/E ratio the better.