Distinction between Shares and Stock 



No

Shares

Stocks


1


Shares are in units

Stock is in a lump holding

2

Shares can be issued directly; it can be issued initially to the public.

Stock cannot be issued directly, originally to the public.


3

Shares need not be fully paid. Shares may be partly paid or fully paid.


Stock must be fully paid


4

Shares may be numbered.

A stock is never or numbered


5

A Share is Transferable as a whole. It cannot be transferred in fractional amounts


Stock can be transferred in any fractions

6

All Shares are of equal denomination

The stock may be of an equal amount


7

Shares can be issued by any company for example public company or private company.


In case of stock, it can be issued only by a public company limited by shares


The main advantage of stock is that the shareholder can transfer any portion of it as he likes.


See also...


1. Share capital, What are different Kinds of share Capital?

2. Establishment of the Securities and Exchange Board of India (SEBI)

3. Kinds of Debentures and Characteristics of Debenture

4. Valuation by registered valuers. (Section 247 of the Companies Act 2013) | Company Law

5. Difference / Distinction Between Company and Partnership Firm (Company Law)


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