Stocks and shares are some of the most critical business terms you should know
A lot of people get confused when shares and stocks are mentioned. Shares and stocks have a lot in common, but there are marked differences between the two. Stock, mostly, is a piece of ownership of a company. For instance, if you buy stock in Facebook, you own a tiny fraction of the company because it’s a large company. Because you own part of the Facebook, you’re able to contribute to decision making, which means you can vote for changes and things that the company should do.
A share, on the other hand, is a portion of ownership in a company. It’s an equal piece of the stock. Shares are usually issued in financial terms. For instance, a company can issue out part of its stock for purchase. If you purchase a piece of that stock, it called a share. You’re allowed to buy as many shares as possible of the stock on offer.