Know the Difference Between Stock and Share

What Are Stocks?

Stocks are financial securities representing part-ownership in a company, providing rights and potential profits from value increases.

What Are Shares?

A share is the smallest unit of stock, representing single unit ownership in a company. Share value increases with company growth.

Key Differences

Stocks represent ownership in multiple companies; shares are single units of stock. Stocks can vary in value; the value of each share of the company is of the same value.

Types of Stocks

Stocks are categorized into common, preferred, large-cap, mid-cap, small-cap, growth, and blue-chip stocks based on rights and company size.

Types of Shares

Shares can be categorized as equity/common shares and preference shares, each offering different rights and priorities in case of company liquidation.

Benefits & Risks

Investing offers diversification and potential profits but involves risks, such as volatility. Research and expert advice are crucial.