Although we're about to divert a bit
away from our main topic, allow me to share some of the investing
knowledge that I picked up along the way. Recently, my friend and I
had a conversation on what we do with our own life and stuff. We went
through the usual, what do you do? Where do you work? Is the salary
enough? The usual if I may say. After sometime, our topic was drifted
to investing for the future and ended up talking about stocks and
shares. According to him, by the way he's a business major, if you
own a share, you own a portion of the company. But a question
lingered on my mind, how does it differ from stock?
Curiosity pecked me and urged my inner
self to at least try to find something that may satisfy this urge to
answer that is prodding me .
In my research in the world wide web,
Share, by definition, is a single unit of ownership in a
corporation, mutual fund, or any other organization. Meanwhile, Stock
is a type of security that signifies ownership in a corporation
and represents a claim on part of the corporation's assets and
earnings.
As I understand it, they are almost the
same thing. It also turned out in my research that these two terms
are sometimes interchanged and only has a little distinction from
each another. The difference between these two lay beneath their
usage. According to sources, the word “stock” is generally used
to refer ownership to various companies while “share” on the
other hand refers to the ownership of a particular company.
So in case you will be presented with
the same question, at least you could right away point out the
difference between the two.
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