Random musings: Stocks and shares
December 6, 2013
There are headlines in the financial press, such as ‘the stock market is flat,’ ‘share prices are not moving,’ foreign funds go for blue chip stocks’, etc. An elderly lady friend of mine who was a little confused about all of this asked me what the difference was between stocks and shares. There is no difference and either word can be used. It is however possible to put some gloss on this to create more clarity.The stock of a company is sold in units called shares. A share is a unit of ownership or equity in a company. The stock market is where shares are bought and sold. So one can say I bought some company X stock or I bought some company X shares.
Owning shares
