Difference Between Stock and Share: Are They The Same?

Viaanadubey16 May, 2024Finance

There has always been a blurry distinction between stocks and shares in the financial markets. Mostly, in American English, both these words are used interchangeably to refer to financial equities, more accurately, securities that imply ownership in a public company.Stocks is a more generic term which is often used to describe a small ownership of one or more than one company. On the contrary, shares refer to the ownership of a single company. So when someone mentions they “own shares,” others might naturally ask, “shares in which company?” Likewise, an investor asking their broker to purchase 1000 shares of XYZ company would specifically indicate the company. However, if they said “buy 1000 stocks,” they’d be referring to a diverse portfolio spanning 100 different companies.