To make it simple stocks and shares are the same things when talking in the day to day talks. The difference between stocks and shares is usually overlooked so you won't get laughed at by your friends or colleagues if you use it without understanding the difference. However, it is good to know that these terms are different if looking from a legal point of view.
A stock is a common word used to describe the ownership certificates of a company, and shares are used to describe the ownership certificates of a particular company. So, if an investor says he owns stock, they are generally referring to their ownership in single or many companies. Specifically, if someone says they own shares, the question then arises 'Shares in which company'?
The technical points of difference between share and stock are as follows:
|A share is that smallest part of the share capital of the company which highlights the ownership of the shareholder.||A stock is a collective word used for a bundle of shares of a member in a company.|
|The share is always originally issued.||The original issue of Stock is not possible.|
|A share is identified by a number which distinguishes it from other shares||A stock does not have any identification number.|
|A shares can be partly paid or fully paid.||A stock is always fully paid.|
|Shares can never be transferred partially or in parts.||A Stock CAN be transferred in the parts.|
|A share can nominal value.||A stock does not have any nominal value.|
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