AboutPaul Henneman Expertise Stock forecasting and fair market valuations.
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Expert: Paul Henneman Date: 3/4/2008 Subject: Units/Shares
Question Hello, I would like to know the definition of the term "units" as it relates to "shares". How is a unit valued as compared to a share? Also, how would I calculate the total number of shares I own based on the number of units I own? Thank You for your time and attention. Pete
Answer Pete,
Thank you for your question!
The term 'unit' can actually be applied in a few different ways. I think that likely it simply means one share, meaning that 'unit' and 'share' are essentially interchangeable.
However, I did find these additional definitions in Barron's Dictionary of Finance and Investment Terms on page 677:
"...minimum amount of stocks, bonds, commodities, or other securities accepted for trading on an exchange... more than one class of securities traded together; once common share and one subscription warrant might sell as a unit for example..."
So it depends upon the context and additional specifics on how you would convert the number of units you own to number of shares. It could be that the number is the same (number of units equals number of shares), or if based on one of the alternate definitions above it would be a bit more complex.
I hope that this helps! Please do not hesitate to follow up with me if I can be of any additional service. I would be happy to try to help more if you have any additional information.
Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com
