DIFFERENCE BETWEEN STOCK AND SHARE


DIFFERENTIAL BETWEEN STOCK AND SHARE
INTRODUCTION
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? An index is a mathematical construct, so it may not be invested in directly. But many mutual funds and exchange-traded funds attempt to “track” an index (see index fund), and those funds that do not may be judged against those that do.

STOCK
The stock (also capital stock) of a corporation constitutes the equity stake of its owners. It represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders’ equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company’s creditors.
Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually any time after a predetermined date. Shares of such stock are called “convertible preferred shares” (or “convertible preference shares” in the UK).
SHARE
In financial markets, a share is a unit of account for various investments. It often means the stock of a corporation, but is also used for collective investments such as mutual funds, limited partnerships, and real estate investment trusts. A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business’s day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares. While shares are often used to refer to the stock of a corporation, shares can also represent ownership of other classes of financial assets, such as mutual funds.
The term ‘share’ is defined by section 2(46) of the Companies Act 1956 as – “share means a share in the share capital of a company includes stock except where a distinction between stock and share is expressed or implied”.
Corporations issue shares which are offered for sale to raise share capital. The owner of shares in the corporation is a shareholder (or stockholder) of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company, which may not reflect the market value of those shares.
The income received from the ownership of shares is a dividend. The process of purchasing and selling shares often involves going through a stockbroker as a middle man.

STOCK SHARE
1.The stock (also capital stock) of a corporation constitutes the equity stake of its owners.
1. share is a unit of account for various investments.
2.Its the company financial stake 2. It often means the stock of a corporation
3.stock means the total asset capital of a company 3. share means a share in the share capital of a company
4.The stock of a company is sold in units called shares. 4. A share is a unit of ownership, or equity, in a company or a corporation
5. “stock” is a general term used to describe the ownership certificates of any company, in general, 5. While “shares” refers to a the ownership certificates of a particular company

6.The stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. 6.Shares represent a fraction of ownership in a business.

CONCLUSION
The stock market typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.[3][4][page needed] Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually any time after a predetermined date. Shares of such stock are called “convertible preferred shares” (or “convertible preference shares” in the UK).
New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer. Some shares of common stock may be issued without the typical voting rights, for instance, or some shares may have special rights unique to them and issued only to certain parties. Often, new issues that have not been registered with a securities governing body may be restricted from resale for certain periods of time.

REFERENCES
• “Mark J Perry” (January 18, 2013). “World stock market capitalization closes year at $54.6 trillion”. http://www.aei.org. American Enterprise Institute. Retrieved August 26, 2015.
• • WFE 2012 Market Highlights
• • “Global Stock Rally: World Market Cap Reached Record High In March | Seeking Alpha”.
• • “IBM Investor relations – FAQ | On what stock exchanges is IBM listed ?”. IBM.
• • “What’s the difference between a Nasdaq market maker and a NYSE specialist?”. Investopedia.com. Retrieved March 5, 2010.
• Ortega, Edgar; Yalman, Onaran (December 4, 2006). “UBS, Goldman Threaten NYSE, Nasdaq With Rival Stock Markets”. Bloomberg.com. Retrieved 2011-05-31

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