Details of stock
Stock means converted fully
paid-up shares. Thus converting fully paid-up shares shareholder becomes
stockholder. Although shareholders become stockholder they have the right as
dividend as a shareholder. No company can issue stock directly.
A stockholder owns Rs. 1000 worth
of stock means it consist of 100 share of Rs. 10 each. Though the investment in
the company remains same it described differently.
Difference between
stock and share
SL. NO
|
STOCK
|
SHARE
|
1
|
Stock is a consolidated value of share capital
|
Each Share in physical form have distinct number.
|
2
|
Stock is consisted of fully paid-up share.
|
Share may or may not be fully paid up.
|
3
|
Stock have no nominal value
|
Shares have a nominal value.
|
4
|
Denomination of stock varies
|
All shares are equal denomination.
|
5
|
Transfer of stock in fraction is possible
|
Transfer of share in fraction is not possible
|
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