What is difference between stock and share?

by trycia.jones , in category: Economics , 3 years ago

What is difference between stock and share?

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1 answer


by kenny , 3 years ago

Stock and share are words used primarily on financial transactions. Many people confuse these two terms to mean the same thing. However, these two terms don't mean the same.

These two terms have things in common such as they are both used in the financial markets and recorded in the trading books.

Stock is a general term used to refer to company ownership. It is a security type that shows ownership of a company or companies. When a company needs to raise capital, it usually issues shares. For example, If you own stock in a firm, it means you own shares of the same firm's stock.

A share represents the smallest measure of stock. It shows ownership of a specific company. Shares make the calculation of stock value possible. Shares have a for example, a particular company issues 10, 000 shares of stocks to the public, and you own 1,000 shares, it means you own 10% shares.

The main difference between stock and share is stock is a general term used to refer to company ownership in one or more companies, while shares is a term used to refer to a specific value of ownership in a particular company.