6 Difference Between Share and Stock

Share and stock are the methods to represent the capital of the company. Share and stock are very famous these days due to awareness about these on social media. Shares are issued when the company is new or wants to acquire some capital to increase the business. Share is the smallest divided unit of the total share capital of a company. Share is shared in the capital of the company. On the hand when a company represents the capital in stock. A stock is a collection of the shares which are fully paid. In that case no unit value is present in the method of stocks.

Everyone wants to increase his property with the investments in the share and stocks. Share and stock are the two methods of investment in which investment is done in a company. So it’s very important to understand share and stock. In this article we will discuss the share and stock in detail. When the shares are converted in the stock in that case shareholders become the stockholder. There are many terms which are related to the share and stock. We will discuss all the terms in this article.

Share vs Stock

Sr. No.	Share	Stock
1	Smallest divided unit of the capital of the company.	Conversion of the fully paid up share in the single fund.
2	Originally issued.	Original issue of stock is not possible.
3	Contains distinctive numbers.	Don’t have definite numbers.
4	It is possible to pay shares in full or partially.	Always fully paid.
5	Don’t transfer in fractions.	Transferred in the fraction
6	Have a nominal value.	Don’t have nominal value.

Share

Share is a share in the capital of the company. Share is the smallest divided unit of the total capital of the company. Share is the method to represent the capital of the share. When the company is new or needs to increase the capital or investment for the business growth. In that case the company issues the share with some price in the market. For example, A company issues shares against the total capital of the company. The total capital of the company is 10000. This company issues 1000 shares @ 10 per share. Ravi purchased 100 shares so in this case Ravi holds 10 % share of the company. After that the company issue him a share certificate. After that, the company registered Ravi’s name in the ROM(register of members). Now Ravi is a member of the company.

When the investors invest money in the company and get shares against the money. Shareholders get dividends every year. Main motive of the investors to buy the share is to increase their money according to the time. The share price has increased with the growth of the company. Shareholders are free to sell part or full shares at any time. When investors finds that the price of the shares is going down in that case investors sells their share.

Stock

Stock is the single fund of all paid up share of a member. Stock is a method in which company represents its capital value. Stocks can’t be partially paid. Company has to right to convert fully paid up share into stock. In this case shareholders became stock holders. To convert share into stock the concerned company have to notice to ROC about the information of conversion of share into the stock.

After the conversion of the share to stocks. Register members show the stock held by each member as per share held by them. There are mainly two types of the stocks which are common stock and preferred stock.

Main difference between share and stock

1. Share is the smallest divided unit of the capital of the company. While stock is conversion of the fully paid up share in the single fund.
2. Original issue of stock is not possible. While shares were originally issued.
3. Stocks don’t have definite numbers. While share contains distinctive numbers.
4. It is possible to pay shares in full or partially. Stock is always fully paid.
5. Stocks are transferred in the fraction and shares don’t transfer in fractions.
6. Stocks don’t have nominal value. Shares have a nominal value.

Conclusion

Share and stock are the two methods which are used to represent the capital value of a company. Shares and stock are issued when the company is new or needs funds to grow the company. All companies’ shares are always available on the NSE and BSE. NSE and BSE indexes are nifty and Sensex which shows the performance of the share and stock. Who wants to buy shares and stock go on any platform like angel one, zerodha and grow where buying and selling of share and stock are very easy.

This is all about the share and stock. We hope this will be helpful for you. If you have any doubt please feel free to comment on us. For more interesting topics like this please go through our  owe website.