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what is the difference between stock & shares,
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Answer Posted / deeapk kumar sharma
Simply put, a stock represents part ownership of a company.
Anyone who holds a stock of say, Reliance, can claim that he
has a stake in the company and has a proportional share in
the company’s assets and profits. The reason why we use the
word proportional is because the level of ownership depends
not only on the number of shares a person holds but also on
the total number of shares that have been issued. For
example, if you were to hold 5 shares of Reliance, and had
Reliance issued 100 shares, you would have a 5% ownership of
Reliance. Most companies also give voting rights to all its
shareholders which gives its shareholders a proportional
vote in certain major company decisions.
| Is This Answer Correct ? | 46 Yes | 42 No |
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