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In the video, the concept of shares is explained using the analogy of dividing a pizza among friends. When two people share a pizza, they each get a half, representing equal shares. This division applies to any number of people: four friends will split the pizza into four shares, each getting one share, and eight will divide it into eight shares. The discussion then transitions to companies, where shareholders similarly share control over the company, just like pizza eaters share the pizza. The summary emphasizes that shareholders are essentially the owners of the company, sharing authority based on the number of shares they hold.
