Difference between Share and Stock
|
Basis |
Share |
Stock |
|---|---|---|
|
Definition |
A single unit of ownership in a specific company. Owning shares means you have a tiny stake in that company. |
A broader term representing ownership across one or more companies. Your stock portfolio might include shares of various businesses. |
|
Scope |
It represent ownership in a single company. |
It represent your overall holdings in one or multiple companies. |
|
Value |
A share’s value fluctuates based on the company’s performance. Shares have a “face value” set at issuance. |
It represents the overall worth of your holdings, which can vary between companies. |
|
Issuance |
Shares can be newly issued by a company to raise capital. |
Once issued, stocks are usually traded on a stock exchange between investors. |
|
Ownership Rights |
Each share typically comes with voting rights on company decisions. |
Your overall stock portfolio influences the extent of your ownership rights across various companies. |
|
Paid-up |
Shares can be either fully paid-up or partially paid-up. This means a shareholder may pay the total price upfront or in installments. |
Stock is typically fully paid-up, as investors usually purchase shares at their current market value. |
|
Types |
Mainly divided into common (voting rights) or preferred (priority dividends) |
Include common, preferred but also categories like growth, income, blue-chip, etc. |
|
Risk |
The risk level of an individual share is tied directly to the financial health and performance of that company. |
Buying stock in multiple companies can diversify your portfolio, potentially spreading out risk while also expanding opportunities for returns. |
|
Terminology |
Used when discussing holdings in a single company (“I own 100 shares of Apple”). It is favored in British English and in reference to specific companies. |
Preferred term when discussing your broader investments (“My stock portfolio is doing well”). It is more common in American English and when discussing investments broadly. |
|
Example |
You invest in 500 shares of Apple and 200 shares of Tesla. |
Your Apple shares and Tesla shares are individual holdings. Together, they form your stock portfolio. |
Difference between Share and Stock
The terms “Share” and “Stock” are used interchangeably, but are different from one another. A “share” specifically denotes ownership in a single company, while “stock” refers more broadly to shares of ownership in any company and can also encompass the entire stock market.