company accounts

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

REDDY VIVEK

REDDY VIVEK (Querist)
Follow

20 May 2010 what is the difference between stock and shares

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

20 May 2010 In today's financial markets, the distinction between stocks and shares has been somewhat blurred. Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates. However, the difference between the two words comes from the context in which they are used.

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. Technically, if someone says that they own shares - the question then becomes - shares in what company?

Bottom line, stocks and shares are the same thing. The minor distinction between stocks and shares is usually overlooked, and it has more to do with syntax than financial or legal accuracy.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now