Share and Stock Market
In today's financial markets, the distinction between stocks and shares has been somewhat blurred. Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates. However, the difference between the two words comes from the context in which they are used.
For example, "stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. So, if investors say they own stocks, they are generally referring to their overall ownership in one or more companies.
Bottom line, stocks and shares are the same thing. The minor distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.
Share is liability of business, stock is assets simply put, and a stock represents part ownership of a company. Anyone who holds a stock of say, Reliance, can claim that he has a stake in the company and has a proportional share in the company’s assets and profits. The reason why we use the word proportional is because the level of ownership depends not only on the number of shares has a person held but also on the total number of shares that have been issued.
For example, if you were to hold 5 shares of Reliance, and had
Reliance issued 100 shares; you would have a 5% ownership of
Reliance. Most companies also give voting rights to all its
Shareholders which gives its shareholders a proportional vote in certain major company decisions. Fully paid bulk of shares is known as stock share may be partly paid stock can be divided share can't fully paid bulk of shares is known as stock both con be dividend today's financial markets, the distinction between stocks and shares has been somewhat blurred. Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates. However, the difference between the two words comes from the context in which they are used.
For example, "stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. So, if investors say they own stocks,
They are generally referring to their overall ownership in one or more companies. Technically, if someone says that they own shares - the question then becomes - shares in what company?
Bottom line, stocks and shares are the same thing. The minor distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.
There is no Literary or legal difference between stock and share .These two financial terms can be used interchangeably.
Generally when we talk about the ownership holding of a single company we say Shares and when we hold in many companies we use the term stocks.
In general sense these two are used synonymous but slight distinction however is there. Generally Investors hold shares of many companies. So the holding is called stock (means bundle of shares of many companies). If am owning 500 shares of ten companies of 50 each, then I am holding a stock. Hence stock consists of shares of many companies.
Best Example for Stock is: a Unit in a mutual fund. It has a portion of shares of many companies.
The stock is total worth of the company while the share is the small part of this worth.
Stocks are fully paid up whereas shares may be fully paid up or partly paid up.
Shares may be issued when a company is incorporated but stock cannot be issued under such circumstances. Only fully paid shares can be converted into stock.
Stocks is convenient method of transferring because it can be issued or transferred in fractional parts whereas shares cannot be divided below the face value of each share.
Stocks are not numbered whereas shares are serially numbered. A Share is always registered and not transferable by mere delivery but stock man may be registered or unregistered or unregistered stock can be transferred by mere delivery.
"stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. So, if investors say they own stocks, they are generally referring to their overall ownership in one or more companies.
In today's financial markets, the distinction between stocks and shares has been somewhat blurred. Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates. However, the difference between the two words comes from the context in which they are used.
For example, "stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. So, if investors say they own stocks, they are generally referring to their overall ownership in one or more companies.
Bottom line, stocks and shares are the same thing. The minor distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.
Share is liability of business, stock is assets simply put, and a stock represents part ownership of a company. Anyone who holds a stock of say, Reliance, can claim that he has a stake in the company and has a proportional share in the company’s assets and profits. The reason why we use the word proportional is because the level of ownership depends not only on the number of shares has a person held but also on the total number of shares that have been issued.
For example, if you were to hold 5 shares of Reliance, and had
Reliance issued 100 shares; you would have a 5% ownership of
Reliance. Most companies also give voting rights to all its
Shareholders which gives its shareholders a proportional vote in certain major company decisions. Fully paid bulk of shares is known as stock share may be partly paid stock can be divided share can't fully paid bulk of shares is known as stock both con be dividend today's financial markets, the distinction between stocks and shares has been somewhat blurred. Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates. However, the difference between the two words comes from the context in which they are used.
For example, "stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. So, if investors say they own stocks,
They are generally referring to their overall ownership in one or more companies. Technically, if someone says that they own shares - the question then becomes - shares in what company?
Bottom line, stocks and shares are the same thing. The minor distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.
There is no Literary or legal difference between stock and share .These two financial terms can be used interchangeably.
Generally when we talk about the ownership holding of a single company we say Shares and when we hold in many companies we use the term stocks.
In general sense these two are used synonymous but slight distinction however is there. Generally Investors hold shares of many companies. So the holding is called stock (means bundle of shares of many companies). If am owning 500 shares of ten companies of 50 each, then I am holding a stock. Hence stock consists of shares of many companies.
Best Example for Stock is: a Unit in a mutual fund. It has a portion of shares of many companies.
The stock is total worth of the company while the share is the small part of this worth.
Stocks are fully paid up whereas shares may be fully paid up or partly paid up.
Shares may be issued when a company is incorporated but stock cannot be issued under such circumstances. Only fully paid shares can be converted into stock.
Stocks is convenient method of transferring because it can be issued or transferred in fractional parts whereas shares cannot be divided below the face value of each share.
Stocks are not numbered whereas shares are serially numbered. A Share is always registered and not transferable by mere delivery but stock man may be registered or unregistered or unregistered stock can be transferred by mere delivery.
"stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. So, if investors say they own stocks, they are generally referring to their overall ownership in one or more companies.
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