Difference between stocks and shares



The stocks and shares are distinguished with the help of following points:

1. A share is one of a number of individual units into which the capital of a company is divided. Stock is the capital in the form of a fund which may be divided into any desired amount.

2. Shares may be partly or fully paid-up, but stock must be fully paid.

3. Shares can be issued directly but stock cannot

4. Shares has a nominal value, whereas stock has none.

5. Shares must bear distinct numbers, while stock is never numbered.

6. Shares are of equal denomination while stock may be split into unequal amounts.

7. Shares cannot be transferred in fractional amount; stock can be transferred in any fraction although the articles may provide the minimum fractional amount of stock which can be transferred.