What is the difference between a stock and a share?

The main difference between a stock and a share is that stock is a broader concept to convey ownership in a company, while shares are the individual units of ownership. The words "stock" and "share" are often used interchangeably, but there are key differences between the two. Stocks are securities that represent ownership in a corporation.

What is a stock & how does it work?

Stocks, also called equities, are a type of security that gives investors a stake in a publicly traded company. A publicly traded company trades on a stock exchange, like the New York Stock Exchange or Nasdaq. When you buy stock, you buy a share or fractional shares of a publicly traded company.

What is the difference between a bond and a stock?

A stock represents fractional ownership of equity in an organization. It is different from a bond, which operates like a loan made by creditors to the company in return for periodic payments. A company issues stock to raise capital from investors for new projects or to expand its business operations.

What is the difference between a stock and an ETF?

A stock is a single share of a company, whereas an ETF is a type of mutual fund with a key difference: you can trade it during the day like a stock. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.