Share and Stock Key Differences Explained

The Difference between Share and Stock is that, one is the subset of the other. When you say Share Vs Stock, you mean which one is greater. By the time you complete this article, you will come to realise that Difference between a Share and Stock don’t actually exist because, A Share is actually a part of Stock. So, Share is a sub-set of Stock and Stock is a super-set of a Share.

Share Vs Stock

As mentioned above, A Stock normally contains Shares, Bonds etc. So, when we say Stock, what we mean is a bundle. If Stock is a Pizza, then Share is the Crust. You see now, as pizza have other elements like chicken chunks, Jalapeno etc, A typical Stock also have Shares as its main crust, Bonds as Chicken Chunks and Securities as Jalapeno etc.

Shares Vs Stock Difference explained with example


Share and Stock Key Differences

Three Key differences between the two terms are explained below:

Difference Share Stock
Paid Up A Share can be partly paid-up A Stock is always fully paid up
Value A Share has a nominal Value A Stock will not have a Nominal Value
Issuer A Share can be issued by both Public and Private Limited Companies A Stock can be issued only by Listed Public Companies

Share and Stock Definition

The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale so as to raise capital for the company.

Two major types of shares are:

(1) ordinary shares (common stock), which entitle the shareholder to share in the earnings of the company as and when they occur, and to vote at the company’s annual general meetings and other official meetings.

(2) preference shares (preferred stock) which entitle the shareholder to a fixed periodic income (interest) but generally do not give him or her voting rights.

Stock is a kind of share in the ownership of a particular company. The main purpose of a stock market is to exchange of stocks & derivatives between buyers and sellers.

A stock or share represents a fixed percentage ownership in a company or business. For example if a company has issued 100 shares and if someone owns 1 share then they happen to own 1% of shares of the company. This is also means that the shareholder owns 1% of net assets of the company and they also have right to 1% of the net profit of the company.

Updated: April 17, 2018 — 5:40 am

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