Shares, also called stocks, are ownership stakes in a limited company. Someone who owns shares is a shareholder and owns a proportional part of the company: if it has issued a million shares and you own a thousand, you own 0.1%. Shares are one of the world's main asset classesAsset classA group of assets that earn returns in similar ways and follow similar rules, such as shares, bonds, property, cash deposits and commodities., along with BondsBondsA loan from the buyer to the issuer, such as a government or company, which promises to pay interest and repay the principal at maturity., property and bank deposits.
What rights come with them?
- Dividends. A profitable company can pay dividends to its shareholders. The annual general meeting decides this, usually once a year.
- Voting rights. Shareholders elect the board and vote on major decisions at shareholder meetings.
- Limited liability. You can't lose more than you put in, and you aren't liable for the company's debts.
What sets the price?
The price of a share is set by supply and demand, and demand by expectations of the company's future profits. Good news about the business, lower interest rates and optimism about the economy usually push the price up. Bad news and rising rates push it down.
If a company goes bankrupt, lenders are paid before shareholders, who often get nothing. In the banking collapse of autumn 2008, shares in Kaupþing, Landsbankinn and Glitnir became worthless, and the three banks were then the largest companies on the Icelandic stock exchange.
Where are shares traded?
Shares in listed companies are traded on a stock exchange. In Iceland that is Nasdaq Iceland, formerly Kauphöll Íslands, where shares in 27 companies were listed on the Main Market at the start of November 2026. People buy shares through a bank or a securities firm, either directly or through funds that hold many companies at once, such as exchange-traded fundsExchange-traded fund (ETF)A fund traded on a stock exchange like an ordinary share, which can for example track the price of bitcoin.. Shares in unlisted companies also exist, but they are harder to sell.
Shares and crypto
Shares and crypto are often compared, but they are different in nature. A share is a stake in a company's business and profits. BitcoinBitcoinThe first and largest cryptocurrency: a digital currency that no single party controls, with a fixed limit of 21 million coins. isn't issued by any company and pays no dividends. People value it more the way they value gold, for its fixed supply and because no single party controls it.
For tax they are more alike. Dividends and gains on shares count as capital income, like gains on crypto, and are taxed at 22%. The capital income allowance of ISK 300,000 a year, however, covers dividends and gains on shares in listed companies, but not crypto.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 2 November 2026.