Is there is difference in Shares and Stock? Most of the people use them interchangeable. It's silly one question, but if any expert help me out in understanding this would be great.
Is there is difference in Shares and Stock? Most of the people use them interchangeable. It's silly one question, but if any expert help me out in understanding this would be great.
The stock or capital stock of a business entity represents the original capital paid or invested into the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business which may fluctuate in quantity and value.Originally Posted by RajS
The stock of a business is divided into shares, the total of which must be stated at the time of business formation. Given the total amount of money invested into the business, a share has a certain declared face value, commonly known as the par value of a share.
Source - wikipedia.org
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I am speaking from experience and my own personal views above - I am not an advisor, nor an expert.
Shares and stocks are one and the same thing.
What Does Shares Mean?
A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.
What Does Stock Mean?
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Also known as "shares" or "equity".
Source - Investopedia.com
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Good Info Expert. My understanding is also same. But now I got the meaning of both the terms.
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