Share - used to denote ownership.
Stock - used to denote more than one unit (quantitative vs qualitative).
2007-12-02 04:46:12
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answer #1
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answered by Anonymous
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This question is about bonds.
what's this?
Stocks (or Shares)
Stocks (or Shares) are paper certificates representing ownership in a business. Therefore, if a company has issued 1 million shares and an investor owns 1 share only, he is a part owner (or shareholder) of the company. Stocks or shares are represented in the equity segment of the balance sheet. A stock certificate is perpetuity, i.e., it lasts as long as the company does. Shareholders have a residual claim (last claim) on whatever net income (or profit) and assets are left over after the bondholders have been fully paid off. It is the most common source of raising funds
Difference between Shares & Bonds:
The main difference between shares and bonds is that shares are representation of ownership in a company while bonds are not representative of ownership.
The second difference is that shares last as long as the company lasts where as bonds have limited life.
Another difference is that the return on a bond is predetermined, i.e., the investor knows in advance how much return he would get from a bond. However, a stockholder cannot be certain about the return on a stock investment, since the dividends may or may not be paid in a certain year or the percentage of dividends announced may vary.
2007-12-02 16:39:49
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answer #2
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answered by tmuthiah 5
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STOCK represents a share of ownership in a corporation.Stock typically take the form of shares of common stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Shares of such stock are called "convertible preferred shares" (or "convertible preference shares" in the United Kingdom).
Although there is a great deal of commonality between the stocks of different companies, each new equity issue can have legal clauses attached to it that make it dynamically different from the more general cases. Some shares of common stock may be issued without the typical voting rights be included, for instance. Or some shares may have special rights unique to them and issued only to certain parties. These case by case variations in the specific form of stock issuance is beyond the scope of this article, except to note that not all equity shares are the same.
SHARE is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, use of the word shares in the plural to refer to stock is so common that it almost replaces the word stock itself. And especially in American English, the plural stocks is widely used instead of shares, in other words to refer to the stock (or perhaps originally stock certificates) of even a single company. Traditionalist demands that the plural stocks be used to refer only to stock of more than one company are rarely heard nowadays.
The income received from shares is called a dividend, and a person who owns shares is called a shareholder.
A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning they either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share. Voting and Non-Voting shares are also known as Class A and B shares.
2007-12-03 00:51:05
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answer #3
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answered by Rapa 6
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Every Joint Stock Company has Share Capital, divided into Shares of various denominations.There can be only two types of Shares in Indian Companies according to Indian Companies Act,1956. ..viz, Equity and Preference shares.
When Shares are fully paid up i.e.; full amount due against each share has been received by a Company, the Company may convert the Shares into Stock.In that case, the shareholders will be asked to surrender their shares and receive Stock certificates from the Company.Say , you hold Shares of rs.100 each numbering 1,000 of these.When you surrender your fully paid Shares to the Company which decided to convert its Shares into stock , you will receive Stock Certificate of Rs.1,00,000.From now on you can sell or buy any amount (in terms of rupees ) Stock of such a company and question of buying or selling "any number of shares doesn't arise from now on'."OK?
God Bless
2007-12-02 04:57:52
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answer #4
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answered by bikashroy9 7
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It's the same as slice and pizza.
2007-12-02 04:42:27
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answer #5
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answered by Michael B 5
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