What are stocks? What's the difference between Stocks and Shares?

 


Like we discussed in our previous articles. Investors prefer investments like Mutual Funds and Equity. Equity investment is commonly termed as an investment in stocks or shares.

Stocks/Shares entitles the stockholder/shareholder ownership in the company, which is relative to the number of shares he/she owns in that particular company. 

Nowadays, the words stocks and shares are used interchangeably. In the olden days, "stocks" were used to refer to ownership n a company, whereas the word "shares" was used to denote an investment, not only in equity. For example: "I have shares in real estate investments."