Difference Between Shares vs Stocks

shares vs stocks

Looking at their usage, shares and stocks don’t have that much of a difference, aside from the spelling. To give the best clarification on these two, let us tackle their differences.

The word “stocks” is of German origin and adopted in English and connotes “fund,” “store,” “growth,” or “foundation.” The money used to increase the growth of a company, a business, or corporation is another of its meaning in the business world. When it comes to the right of ownership, that comes with the obligation and liabilities that goes in accordance with the state/federal law. So the total of the company’s owned assets can be known as stocks. And the term’s usage is popular in the United States.

It’s Germanic origin means “division” and is used in English as a verb and to mean “a part”, which makes “shares” the most common word in the business world of Europe an Asia. If the individual or a group decided to own a portion of the company’s stock, then a certificate for that share is a proof, and is now subjected to having “earnings” based on the increase or decrease in the stock market.

This shows that one is a broad term and the other more specific part of the company’s capital.

Following are key Difference Between Shares vs Stocks

Shares Stocks
Annotation Refers to partial ownership in a specific company Refers to partial ownership in general or overall ownership in one or more companies
Trade Some shares are not traded publicly. Not all shares are stocks Traded publicly. All stocks are shares
Benefits Capital gains Interest are compounded, tax deferral, diversification and time value of money
Risk Loss of capital Economic, inflation and market value.
Votation Vote on certain decissions Have a privilege to vote during stockholders annual meeting
Company Liability No liability Shielded from personal liability from any lawsuits even the company has debts.
Participation Both company profits and losses Both company   profits and losses
Negative side of Investment Crash in share prices, company liquidation, and unfaithful stockbrokers. Not guaranteed to return anything to the investor.
Positive side of Investment Higher inflation rate than commercial banks, assets are protected publicly, Dividends, Bonuses, and capital appreciation. Profits depends on rising stock price, relates directly to company’s growth and performance.

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