Answer Posted / richa

n today's financial markets, the distinction between stocks
and shares has been somewhat blurred. Generally, these words
are used interchangeably to refer to the pieces of paper
that denote ownership in a particular company, called stock
certificates. However, the difference between the two words
comes from the context in which they are used.

For example, "stock" is a general term used to describe the
ownership certificates of any company, in general, and
"shares" refers to a the ownership certificates of a
particular company. So, if investors say they own stocks,
they are generally referring to their overall ownership in
one or more companies. Technically, if someone says that
they own shares - the question then becomes - shares in what
company?

Bottom line, stocks and shares are the same thing. The minor
distinction between stocks and shares is usually overlooked,
and it has more to do with syntax than financial or legal
accuracy.

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