What is the difference between Stock and Share?
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The terms “stock” and “share” are often used interchangeably to refer to a portion of ownership in a company. However, there is a subtle difference between the two.
A stock represents ownership in a company, and it is often used to refer to the entire class of ownership shares that a company issues. In other words, when someone says they own “stock” in a company, they are typically referring to one or more shares of that company’s stock.
On the other hand, a share refers to a specific unit of ownership in a company. When a company issues stock, it is divided into many individual shares, each of which represents a small portion of ownership in the company. When an investor purchases shares of a company’s stock, they are buying a specific number of these individual shares.
In summary, “stock” is the broader term that refers to ownership in a company, while “share” refers to a specific unit of that ownership.