What is the difference between stock and shares?


2 Answer(s)


Most people use these terms interchangeably. Share is the most fundamental basic unit of ownership in a company. Stock refers to the entire capital in the company. So one way to think of this is that the stock of a company is issued in the form of individual shares.

Well its is Good Question.I would like u tell u something more on this .
In US,it is Referred as Stock Market as like India but the meaning of Stock Market is Not same here.Shares are Individual Units of total Share capital Divindend into No of Small units to Facilitate Investors to buy.

While Coming to Stock,it is the Group of Shares put together in a bunch.to be more precise,u must be aware of what a Debenture and Debenture Stock are.Shares are a Part of Stock.

1.One main Difference is Stock Can be Partly or Fully paid up but Stocks are always Fully paid.
2.Shares can only be in Whole Numbers,but Stocks can be in Fractions also.

Incase of More Clarity i would suggest u to refer Companies Act 1956.