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What’s the difference between Stocks and Shares?

The difference between Stocks and Shares

Panika Chamnithurakan avatar
Parašė Panika Chamnithurakan
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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.

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