What’s the difference between stocks and shares?


What’s the difference between stocks and shares?

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Stocks and shares aren’t the same thing. Shares are units used to measure the value of a stock. Just like currency is a unit used to measure to value of money.

A stock is comprised of x amount of shares. Shares have a monetary value assigned to each share. The combine value of all the shares is the value of the stock

A company’s stock is made up of shares.

A person owns 100 shares of Amazon’s common stock.

1 share is the smallest unit of ownership of a company.

A stock is a collection of shares of a particular company.

When you invest money into a company on a stock exchange, you typically will purchase shares of the company stock.

For example, there may be 1000 total shares in Company ABC’s stock.

If I have a stock of crackers in my cupboard, you can come take a share of them.

All the crackers together is literally my stock of crackers (what I have “in stock”). What you took is literally your share of that stock.

These words aren’t financial words, they’re plain English dividing words.

In finance, stock means ownership in a certain company. It’s an ownership interest, rather than, say, being a creditor to the company.

Share is the amount of ownership in the company.

I have 10 shares of Company X stock.

In general, you wouldn’t say “I bought 10 Amazon stocks today,” you’d say “I bought 10 shares of Amazon today”. You might say “I like tech stocks–i own shares in Amazon, Apple, Microsoft, and Google.”