Thursday, July 2, 2009

What are the DIFFERENCE BETWEEN STOCKS AND SHARES???

CHAPTER 18
DIFFERENCE BETWEEN STOCKS AND SHARES

For the first time investors it is difficult to decide where to invest his money .which option to select and when all the information seems to be confusing. In that the most common question asked is what the difference between STOCKS and SHARES is.
In today’s financial market, the distinction between the both is somewhat blurred, however
STOCKS mean ownership of certificates in multiple companies. You may not be only the stockholder but also the shareholder for each particular company as well.
SHARES mean ownership of certificates in a certain company. It makes the person the shareholder of that company.
The common misconception about stocks and shares is that they are different things. In reality they are the same thing but are referred to differently when talking about more than one company.

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