Difference between share and stock

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Difference between stock and share

Difference between stock and share is very minute and depend upon the reference on which those terms are going to use.Both stock and share are related to financial market.Lets throw some light on this issue.

Share:-

Ownership of certificates in a particular company is referred to as “shares,” or “owning shares.” Ownership of shares makes you a shareholder in that particular company.
Stock:-
Ownership of certificates in multiple companies is referred to as “stocks.” Ownership of stocks makes you not only a stockholder, but a shareholder for each particular company as well.

Both these terms are used  to represents part ownership of a company.Anyone who holds a stock of say, Reliance, can claim that he has a stake in the company and has a proportional share in the company’s assets and profits. The reason why we use the word proportional is because the level of ownership depends not only on the number of shares a person holds but also on the total number of shares that have been issued.

Types of stocks:-

Common Stock:-
Holders of common stock are usually entitled to vote at the company shareholder meetings and receive dividends that have been declared.
Preferred Stock:-
Holders of preferred stock do not usually have voting rights. However, they do have a higher claim on the company earnings and assets than common stock holders do.
Another view of this concept:-
A Stock is the ‘financial instrument’ that is, stock is a generic term for a portion of the ownership of a company.
A Share indicates the number of portions of ownership.

Difference between Stock and Share(share vs stock):-
1)Shares refers for particular company whereas  stock refers for many copanies.
2)Second view is,a Stock is the ‘financial instrument’ that is, stock is a generic term for a portion of the ownership of a company.A Share indicates the number of portions of ownership.

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