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what are the difference between share and stock?
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what are the difference between share and stock? Related: Kinds of Sh...
Let's confine ourselves to equities and the equity markets. Investment professionals often use the word "stocks" as synonymous with "companies" – publicly-traded companies, of course. They might refer to energy stocks, value stocks, large- or small-cap stocks, food-sector stocks, blue-chip stocks. In each case, these categories don't refer so much to the stocks themselves as to the corporations that issued them.

Financial pros also refer to common stock and preferred stock. But actually, these aren't types of stock but types of shares.

Technically speaking, shares represent units of stock. A share is the single smallest denomination of a company's stock. So if you're divvying up stock and referring to specific characteristics, the proper word to use is shares.

Common and preferred refer to different classes of stock. They carry different rights and privileges, and trade at different prices. Common shareholders are allowed to vote on company referenda and personnel, for example. Preferred shareholders do not possess voting rights, but on the other hand, they have priority in getting repaid if the company goes bankrupt. Both types of shares pay dividends, but those in the preferred class are guaranteed.

Common and preferred are the two main forms of stock shares; however, it's also possible for companies to customize different classes of stock to fit the needs of their investors. The different classes of shares, often designated simply as "A," "B," and so on, are given different voting rights. For example, one class of shares would be held by a select group who are given perhaps five votes per share while a second class would be issued to the majority of investors who are given just one vote per share.
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what are the difference between share and stock? Related: Kinds of Sh...
SHARES

Certificates or book entries representing ownership in a corporation or similar entity Shark repellant Amendment to company charter intended to protect it against takeover.

STOCK

Ownership of a corporation which is represented by shares which represent a piece of the corporation's assets and earnings.
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what are the difference between share and stock? Related: Kinds of Shares - Share Capital, Company Law
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