Investor Glossary-market shareInvestor Glossary-market shareInvestor Glossary-market shareInvestor Glossary-market shareInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Market Share

The HTML to link to this page
 

Market share is the percentage of the total market that a company controls for a particular product or product category. Put simply, if the widget market is $100 million annually and Acme Inc. sells $25 million in widgets, its market share is 25%. Market share is also sometimes given in unit sales: If Acme sells 10,000 widgets in a 50,000 widget market, its unit market share is 20%. Market share is often broken down by geographic area (state, country, etc.), gender, ethnicity, and other demographics. Companies strive to increase market share to achieve economies of scale in production, distribution, advertising, and other functional areas, thereby widening profit margins and increasing earnings. Moreover, the firm with a dominant market share can often dictate market practices that keep competitors at bay. To increase market share, companies lower prices, improve products, increase advertising spending, and expand distribution channels. The most dramatic way of increasing market share, however, is to merge with a competitor.



Rate this market share definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, per diem, APR, open position, ex-dividend date, current ratio, VIX, Zero Cost Collar, reverse mortgage, option premium, LIBOR, 1031 exchange, risk management, phantom income, cancelled check, FICO score, command economy, wholly-owned subsidiary, dividends payable, EBITDA, stock market close, balance sheet, deferred revenue, minority interest, irrevocable trust, deferred tax, required rate of return, 144a, FTSE, in escrow, limit order, stock split, implied volatility, debt service coverage, annual return, labor relations, quality assurance, ex-dividend, average price per share, inflation, 401a, 1035 exchange, class C shares, diluted share, margin rate, Key Rate Duration, retained earnings, liquidity ratio, covered put


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use