Distinguish between a 'share' and 'stock' as securities, giving at least four points of difference.

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Accepted Answer

The main points of difference between a share and stock are set out below.

| Basis | Share | Stock |
|---|---|---|
| Meaning | The smallest equal unit into which a company's capital is divided | A fixed-income security (government stock, bond or debenture) issued in bulk |
| Return | A variable dividend (equity) or fixed dividend (preference), on face value | A fixed rate of interest, on the nominal value |
| Denomination | Issued in fixed units of a set face value (e.g. ₹10, ₹100) | Held per ₹100 nominal; transferable in any fractional amount |
| Numbering | Each share is distinctly numbered | Not individually numbered |
| Ownership | An equity shareholder is a part-owner of the company | A debenture / bond holder is a creditor (lender) |
| Market quotation | Priced per share (e.g. '₹100 share at ₹120') | Priced per ₹100 nominal (e.g. '9% stock at 90') | …

Q.Distinguish between a 'share' and 'stock' as securities, giving at least four points of difference.

Concept understanding — Face Value, Market Value and Types of Shares

Basis	Share	Stock
Meaning	The smallest equal unit into which a company's capital is divided	A fixed-income security (government stock, bond or debenture) issued in bulk
Return	A variable dividend (equity) or fixed dividend (preference), on face value	A fixed rate of interest, on the nominal value
Denomination	Issued in fixed units of a set face value (e.g. ₹10, ₹100)	Held per ₹100 nominal; transferable in any fractional amount
Numbering	Each share is distinctly numbered	Not individually numbered
Ownership	An equity shareholder is a part-owner of the company	A debenture / bond holder is a creditor (lender)
Market quotation	Priced per share (e.g. '₹100 share at ₹120')	Priced per ₹100 nominal (e.g. '9% stock at 90')

Q.Distinguish between a 'share' and 'stock' as securities, giving at least four points of difference.

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