What’s the difference between Stocks and Shares?

The difference between Stocks and Shares

Written by Eleana Ntagia

Updated: 2023-08-01 13:36:33

In general usage, the terms “stocks" and "shares'' are often used interchangeably to refer to ownership in a company. What are the differences?

  • Shares typically refer to the individual units of ownership in a company that are available for purchase. When a company is formed, it may issue a certain number of shares of stock, each of which represents a portion of ownership in the company. Shares can be publicly traded on stock exchanges or held privately by individuals or institutions.

  • Stocks, on the other hand, is a broader term that encompasses all of the shares of ownership in a company. The stock of a company represents the total value of all of the shares combined. So, if a company has issued 1,000 shares of stock, the stock would represent the value of those 1,000 shares.

In essence, shares are the individual units of ownership, while stocks are the collective value of those shares.

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