INVESTMENT ANALYSIS - DIFFERENCE BETWEEN STOCK AND SHARE

That strong man Mr. N, asked what is the DIFFERENCE BETWEEN STOCK AND SHARE?  This question might come out so, here is the different:

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.

For example, "stock" is a general term used to describe the ownership certificates of any company, 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?

In conclusion, stocks and shares are really basically the same thing. The small distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.

More Answer:

What is the difference between stocks and shares?

The stock of a company is sold in units called shares. A share is a unit of ownership, or equity, in a company or a corporation. Shares are one of the most traded financial instruments.

If you buy a share of a company, you are buying a piece of the company. When you own more than one share in a company or several companies, these are called stocks, because "stock" generally refers to a portfolio of shares.

On the stock markets, shares are also referred to as equities — if you see the term "equities trading", it is exactly the same as share trading.

The person who buys shares in a company is called a shareholder and has a claim on part of the corporation's assets and earnings.

Companies divide their capital into equal units and sell these on the stock market as a means of raising capital for its expansion, rather than borrowing the funds from the banks.

Stocks and shares are traded in various stock markets all over the world.

How a shareholder benefits

There are two main types of share:

1. Preferred stock
2. Common stock

Financial gain

Say you buy 10 shares at $10 each from company A — you have invested $100 into the company. If the value of the company increases by 10%, your shares will also increase by 10%, so they will then be worth $110. If the company value decreases, the value of your shares will also decrease.

Shareholders can earn a profit by reselling the shares at a higher price than they paid for them. For example, if company A's shares rise in value to $12 each then your $100 worth of stock is now worth $120 — if you sell, you make a profit of $20 minus any brokers' fees or taxes you may be liable for.

Shareholders can also make money by holding onto the shares and receiving dividend payouts as the company prospers. This is usually a long-term strategy for investment.