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==Share A Thought: What’s the Difference between a Share and a Stock?== When you start your journey in trading, there are things you should never miss out and one of them is the basic knowledge and understanding about trading itself. Before you can make any trading strategy, you have to know what trading really is, and why you trade. Well, it is also important to know your objectives so that you stay focused on what you are doing. However, in trading, there are important parts of trading, such as a share and a stock. Therefore, before you can start trading, you must know what a share and a stock are, in order to determine which shares to buy or which stocks to buy. This article will give you insights on the difference between a share and a stock. A ‘Share’ is the smallest unit where the company’s capital is divided, representing the ownership of the shareholders in the company. However, a ‘Stock’ is a collection of shares of a member that are fully paid up. When shares are transformed into stock, the shareholder becomes a stockholder, who possesses same right with respect to the dividend, as a shareholder possesses. Basically, shares are the bridge that connects the shareholders and the company. The shares are offered in a form of a stock market for sale, to raise capital for the company. A stock, on the other hand, is the collection of the shares of a member of a company in one fund. It possible for a company to make original issue when it comes to shares, while it is not possible for stocks, since it is the collection of shares bought by investors. Shares can be partly or fully paid up, while stocks can only be fully paid up. A share can have a definite number called distinctive number, while a stock doesn’t have such number. That’s the basic knowledge on the difference between stocks and shares. Remember, you should know everything about it first before joining trading for real. If you have any question regarding stocks and shares, you can contact us now, and we will gladly help you.
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