What Are The Differences Between Shares and Stocks?

What Are Shares?

What Are Stocks?

What Are the Differences Between Shares and Stocks?

People often get confused by considering both shares and stocks to be the same. However, they have several differences. Mentioned below are some of the notable differences between shares and stocks:





Shares refer to the capital of an organisation divided into small lots.

Stocks are financial securities representing a portion of ownership in one or more companies.

Paid-Up Value

The value of shares can be paid up either partly or entirely.

The value of a stock is to be paid up fully.

Specified Number

Shares possess a particular number called a distinctive number.

Stocks do not possess any specified number.

Fractional Transfer

In the case of shares, fractional transfers are not at all possible.

Fractional transfer is possible in case of stocks.

Nominal Value

Shares have a nominal value.

Stocks do not have any nominal value.


It is done in equivalent amounts.

In case of stocks, denomination is done in unequal amounts.


Shares are always issued at either a discount or par.

Stock is issued by converting shares of a particular member into a single fund.


In terms of transfer, the preference for shares is lesser.

In terms of transfer, the preference for stocks is more.

What Are the Benefits of Shares?

What Are the Benefits of Stock?

FAQs About the Difference between Shares and Stocks

What are the types of preference shares?


Preference shares are classified into eight types that include:

  1. Cumulative preference shares
  2. Participating preference shares
  3. Convertible preference shares
  4. Non-cumulative preference shares
  5. Non-participating preference shares
  6. Non-convertible preference shares
  7. Redeemable preference shares
  8. Non-redeemable preference shares

What is equity in shares?

Equity signifies the value that should be returned to the shareholders of a company if all the assets are liquidated and all debts of the organisation are cleared.

Is a share smaller than stock?

Stock signifies the investment as well as the ownership interest of a publicly traded organisation. Whereas shares are the smallest denomination of stock for a specific company. Stocks are used to attract investors while shares are a measure of a stock.

What are the types of shareholders?


There are three types of shareholders, as stated below:  

  1. Equity shareholders
  2. Preference shareholders
  3. Debenture holders