LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Punit Gupta (Owner)     23 November 2010

Querry

What is the difference between Share and Stock? are they same things used interchangably or there is some legal defference between them?


Learning

 4 Replies

AEJAZ AHMED (Legal Consultant/Lawyer)     24 November 2010

 

Share – Definition:

Certificate representing one unit of ownership in a corporation, mutual fund, or limited partnership.

Stock – Definition


An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation's assets and profits. Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain type of company called a corporation has stock; other types of companies such as sole proprietorships and limited partnerships do not issue stock. also called equity or equity securities or corporate stock.

 

Stock - Share : Difference 

 

Every person who owns a part of a company receives a form of security representing or signifying that ownership and which amounts to a claim on part of the corporation’s assets or earnings. In the UK, this security is represented by shares whereas in the US it is commonly referred to as stock. There is no substantive difference between a share and a stock – here we are dealing strictly with a difference in "terminology".

RENISH RAO (ADVOCATE)     25 November 2010

Mr. Ahmed,

Very Nicely explained, Thanks for your knowledge sharing.

Renish Rao

Prasad Patwardhan (Techno-Legal professional)     18 December 2010

I have chosen Investment and securities as optional subject in Final LLB.

Can someone suggest me books...

Internet browsing is consuming too much time and also is not giving precise answers despite of extensive browsing.

Example;

[1] Need for security legislation and investor protection

 [2] historic evolution of Security Laws

goldenglobas (cce)     19 December 2010

Hi, i want to know abt what is the basic facility of Mortgage Interest Rates. Plz, reply.

Thanks.

Mortgage Interest Rates


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register