What is a Share or Stock? Know more about Shares and stocks

What is a Share

A very simple question for those who are already into shares. But, for those who are new to Shares, the following text will help you to understand.

Difference between Share and Stock

The term of share and stock means the same thing, of this stock is a common usage in America for shares. In India we term this as shares.

What is a Share Certificate

Share is the proof of ownership in a company. The physical proof of this ownership is a record called a share certificate. Today, shares are kept in electronic format or it is also termed as dematerialized format. You can still hold a share in a paper format, if you want.

This document is a proof of your share in the company. Your ownership in the company is in proportion to the number of shares you hold. In short, you are buying a partial ownership of the company.

A Simple Example :

Suppose a company issues 100 shares

Out of 100 issued shares, you are buying 10 shares of the company

Now you own 10 percentage of the company.